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		BOARD OF EDUCATION
		OF
		THE
		CITY OF NEW YORK
	 

	 
		EXTENSION AND
		THIRTEENTH AMENDMENT OF CONTRACT
	 

	 
		FOR SPECIAL EDUCATION
		PUPIL
		TRANSPORTATION SERVICES
	 

	 
		Extension and
		Thirteenth
		Amendment
		Agreement made and entered into on the
		date expressed at the end hereof by and between the BOARD OF EDUCATION OF THE CITY SCHOOL DISTRICT OF THE CITY OF NEW YORK (hereinafter
		expressed as “Board of Education,” “Board” or
		“BOE”)1, with principal headquarters located at 52
		Chambers Street, New York, NY 10007, and the Contractor whose name, address and
		authorized signature appear at the end hereof (hereinafter expressed as
		“Contractor”).
	 

	 
		WITNESSETH
	 

	 
		WHEREAS, in 1979 the
		BOE publicly solicited competitive bids for transportation of special education
		pupils under Contract Serial Nos. 0070 and 8108;2 and,
	 

	 
		WHEREAS, at divers
		times thereafter from 1982 through 1984, the BOE publicly solicited competitive
		bids for similar services under Contract Serial Nos. G8805, G8891, G8893, G9301
		and G9325,3 which contracts have incorporated, as of their dates,
		provisions which are counterparts of the provisions of contracts under Serial
		Nos. 0070 and 8108 as they then read; and,
	 

	 
		______________
	 

	 
		1 The terms “New York City
		Department of Education,” “Department,” “NYCDOE” and
		“DOE,” wherever they appear in this Supplemental Amendment Agreement,
		are “doing-business-as” or “dba” names for the Board of
		Education of the City School District of the City of New York.
	 

	 
		2 By their original
		specifications, all contracts under Serial Nos. 0070 and 8108 provide for
		ten-month pupil transportation service from September through June of each
		school or extension year.
	 

	 
		3 By their original
		specifications, all contracts under Serial Nos. G8805, G8891, G8893, G9301 and
		G9325 provide or provided for ten-month pupil transportation service from
		September through June of each school or extension year.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
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		WHEREAS, the Contractor
		tendered a bid(s) under one or more aforementioned contract serial numbers and
		was duly awarded a contract(s) including certain Employee Protection Provisions
		(1st amendment) for the transportation of special education pupils;
		and,
	 

	 
		WHEREAS, from
		September 10, 1979 through December 21, 1979, the Contractor did not provide
		escort services for special education pupils; but, under an emergency contract
		entered into with the BOE (2nd amendment), the Contractor has
		supplied such escort services since that time; and,
	 

	 
		WHEREAS, the New
		York State Legislature enacted Chapter 737 of the Laws of 1979, and the parties
		have desired to amend the Contract to implement Chapter 737 as amended and be
		subject to its terms; and,
	 

	 
		WHEREAS, the
		original terms of all contracts under Serial Nos. 0070, 8108, G8805, G8891 and
		G8893 would have expired on June 30, 1982 unless extended, and all contracts
		under Serial Nos. G9301 and G9325 would have expired on June 30, 1984 unless
		extended; and, Education
		Law §305(14)(a) authorizes
		extensions and provides a payment increase method linked to a defined regional
		Consumer Price Index (hereinafter expressed as “CPI”); and, the BOE
		elected fairly and reasonably on the basis of the best interests of the New
		York City School District to refrain from the extension of the terms of all
		contracts under Serial Nos. G8893 and G9301; and,
	 

	 
		WHEREAS, in 1982
		the BOE and various contractors extended and amended (3rd amendment)
		all contracts under Serial Nos. 0070, 8108, G8805 and G8891 until June 30,
		1984; and,
	 

	 
		WHEREAS, in 1984
		the BOE and various contractors extended and amended (4th amendment)
		all contracts under Serial Nos. 0070, 8108, G8805, G8891 and G9325 until June
		30, 1987; and,
	 

	 
		WHEREAS, in 1987
		the BOE and various contractors extended and amended (5th amendment)
		all contracts under Serial Nos. 0070, 8108, G8805, G8891 and G9325 until June
		30, 1990; and,
	 

	 
		WHEREAS, in 1990
		the BOE and various contractors extended and amended (6th amendment)
		all contracts under Serial Nos. 0070, 8108, G8805, G8891 and G9325 until June
		30, 1993; and,
	 

	 
		WHEREAS, in 1993
		the BOE and various contractors extended and amended (7th amendment)
		all contracts under Serial Nos. 0070, 8108, G8805, G8891 and G9325 until June
		30, 1996; and,
	 

	 
		WHEREAS, in 1994
		the BOE publicly solicited competitive bids for transportation of special
		education pupils under Contract Serial No. 7165,4 whose original
		term would have expired on June 30, 1997, unless extended; and,
	 

	 
		______________
	 

	 
		4 By their original
		specifications, all contracts under Serial No. 7165 provide for twelve-month
		pupil transportation service from July through June of each school or extension
		year as compared to other serial numbers covered by this Extension and
		Thirteenth Amendment Agreement that provide for ten-month pupil transportation
		service from September through June of each school or extension year.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
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		WHEREAS, in 1995,
		the BOE and various contractors amended and extended, either initially or
		further, all contracts under Serial Nos. 0070, 7165, 8108, G8805, G8891 and
		G9325 (8th amendment) until June 30, 2000; and,
	 

	 
		WHEREAS, in 1996
		the BOE and various contractors, including the Contractor, mutually determined
		that changes had occurred in banking, financial services and insurance markets
		affecting the availability and affordability of performance bonds, letters of
		credit and other forms of performance security; and, the BOE and various
		contractors, including the Contractor, entered into a Supplemental Ninth
		Amendment of Contract for Special Education Pupil Transportation Services
		thereby modifying and revising the performance security provisions of Contract
		Serial Nos. 0070, 7165, 8108, G8805, G8891 and G9325; and,
	 

	 
		WHEREAS, in 1998
		the Chancellor inaugurated “Project Read,” an after-school extended
		day program to improve pupil literacy; and, BOE and various contractors,
		including the Contractor, mutually determined that contractual revisions would
		be needed to allow overtime wage rates to be paid to school bus escorts if the
		transportation aspect of Project Read were to be feasible; whereupon, the BOE
		and various contractors, including the Contractor, entered into a Supplemental
		Tenth Amendment of Contract for Special Education Pupil Transportation Services
		thereby modifying and revising applicable provisions of Contract Serial Nos.
		0070, 8108, G8805, G8891 and G9325 (but not Contract Serial No. 7165);
		and,
	 

	 
		WHEREAS, in 2000
		the BOE and various contractors amended and extended all contracts under Serial
		Nos. 0070, 7165, 8108, G8805, G8891 and G9325 (11th Amendment); and 
	 

	 
		WHEREAS, effective
		as of Mach 31, 2003, the BOE and various contractors further supplemented and
		amended all contracts under Serial Nos. 0070, 7165, 8108, G8805, G8891 and
		G9325 (12th Amendment) to create BOE-sponsored, centralized purchasing programs
		for automobile liability insurance and vehicle fuels and to reduce other
		contract cost factors; and
	 

	 
		WHEREAS, the BOE
		has determined that all contracts under Serial Nos. 0070, 7165, 8108, G8805,
		G8891 and G9325 should be still further amended and extended, and the
		Contractor agrees; and, 
	 

	 
		WHEREAS, in
		accordance with the BOE contract authorization process, the BOE Office of Pupil
		Transportation (hereinafter expressed as “OPT”) submitted an official
		request for authorization (hereinafter expressed as “RA”) to the BOE
		Office of the Chancellor; and, Chancellor Joel I Klein approved the said RA
		on _____ , 2005, thus authorizing OPT to enter into further
		amendment and extension of contracts under Serial Nos. 0070, 7165, 8108, G8805,
		G8891 and G9325 (hereinafter expressed collectively as “Contract”)
		until a termination date not later than June 30, 2010, unless further extended;
		and,
	 

	 
		WHEREAS, the
		parties mutually desire to make this extension agreement and amendment to the
		Contract as heretofore amended and extended;
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
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		NOW, THEREFORE, in
		consideration of the heretofore-recited stipulations and the
		hereinafter-expressed terms, conditions and specifications, the BOE and the
		Contractor, as the parties to this Extension and Thirteenth Amendment
		Agreement, do hereby stipulate and agree both as above and as follows:
	 

	 
		(A) TERM OF EXTENSION
		AGREEMENT
	 

	 
		All references to the termination of the
		Contract, by whatever terminology, shall be deemed hereafter to read “June
		30, 2010, unless further extended.”
	 

	 
		(B) PAYMENT PROVISIONS
	 

	 
		ARTICLE 28(C) of contracts under Serial No.
		7165 and ARTICLE V-A of contracts under Serial Nos. 0070, 8108, G8805, G8891
		and G9325 entitled, “PAYMENT DURING PERIOD OF EXTENSION,” is hereby
		further amended, both of which to read as follows for the term of this
		Extension and Thirteenth Amendment Agreement:
	 

	 
		“(1) Any provisions of ARTICLE V-A or 28 (as applicable) to
		the contrary notwithstanding, the daily rate(s) per vehicle during this
		Extension Period shall be deemed to be adjusted each year according to the
		following formulae subject to the Office of Pupil Transportation (hereinafter
		expressed as ‘OPT’) Director’s approval of all or any portion(s)
		of the Contractor’s claims in the below-described annual Cost
		Justification Financial Statements for the extension years commencing
		2005-2006:
	 

	 
			
				
				   
				

			 	
				
				  “(a)
				

			 	
				
				  During the Extension Year of July 1,
				  2005 through June 30, 2006, the Contractor’s daily rate(s) per vehicle in
				  effect for the Extension Year of July 1, 2004 through June 30, 2005 in
				  accordance with the schedule of rates annexed hereto and made a part hereof as
				  ‘Attachment A,’ shall be increased by
				  five-and-sixty-sixths-hundredths percent (5.66%), (hereinafter expressed as
				  ‘Fixed Percentage Increase’)5 and such increased rate
				  shall be further increased by an amount not to exceed whichever of the
				  following represents the least amount of actual increase: (i) the same
				  percentage by which the Consumer Price Index (hereinafter expressed as
				  ‘CPI’) as of May 2005 shall have increased over the CPI as of May
				  2004; or, (ii) the amount in dollars expressed as a percentage by which
				  the Contractor’s actual Total Allowable Costs during the Extension Year
				  from July 1, 2004 through June 30, 2005 shall have increased over each
				  Contractor’s actual Total Allowable Costs during the Extension Year of
				  July 1, 2003 through June 30, 2004, plus any
				  previously ‘Unabsorbed Percentage Cost Increases’ for Extension Years
				  2000-2001 through 2004-2005 to the extent such
				

			 

 

	 
		______________
	 

	 
		5 For contracts under Serial No.
		7165 only, the Fixed Percentage Increase for Extension Year
		2005-2006 shall be three-and-seventy-four-hundredths-percent percent
		(3.74%). The Fixed Percentage Increase for
		the  2005-2006 Extension Year of
		five-and-sixty-six-hundredths percent (5.66%) for contracts under Serial Nos.
		0070, 8108, G8805, G8891 and G9325 and
		three-and-seventy-four-hundredths-percent percent (3.74%) for contracts under
		Serial No. 7165 shall not be subject to any requirement of equivalent cost
		increase justification. Cf. Paragraph
		5(a) and ARTICLE XIX, Paragraph
		(B)(2)(a)(i), infra, as well as Notes 11 and
		13, infra. 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		5
	 

	 
		 
	 

	 
		 
	 

	 
		Unabsorbed Percentage Cost Increases shall
		not have been applied to prior extension year increases. The term
		‘Unabsorbed Percentage Cost Increases’ means the portion of the
		Contractor’s percentage increase in actual Total Allowable Costs
		(applicable to the calculation of a rate increase for a particular Extension
		Year), which exceeded the applicable CPI percentage increase for such Extension
		Year. By way of example, for Extension Year 2003-2004 a contractor was entitled
		to a maximum increase of its daily rate per vehicle equal to the lesser of
		(a) the percentage increase of the CPI in May 2003 over the CPI in May
		2002; and, (b) the percentage increase of the Contractors actual Total
		Allowable Costs for Extension Year 2002-2003 over the Contractor’s actual
		Total Allowable Costs for Extension Year 2001-2002. If such CPI increase were
		four percent (4%) and such Contractor’s actual cost increase were six
		percent (6%), the Contractor would have received a rate increase of four
		percent (4%), and would have an Unabsorbed Percentage Cost Increase of two
		percent (2%). 
	 

	 
			
				
				   
				

			 	
				
				  “(b)
				

			 	
				
				  During the Extension Year of July 1,
				  2006 through June 30, 2007, the Contractor’s daily rate(s) per vehicle
				  shall be augmented by an amount not to exceed whichever of the following
				  represents the least amount of actual increase: (i) the same percentage
				  by which the CPI as of May 2006 shall have increased over the CPI as of May
				  2005; or, (ii) the amount in dollars expressed as a percentage by which
				  the Contractor’s actual Total Allowable Costs during the Extension Year of
				  July 1, 2005 through June 30, 2006 shall have increased over the
				  Contractor’s actual Total Allowable Costs during the Extension Year of
				  July 1, 2004 through June 30, 2005, plus any
				  previously Unabsorbed Percentage Increases from Extension Year 2000-2001
				  through 2005-2006 to the extent such Unabsorbed Percentage Cost Increases shall
				  not have been applied to prior extension year increases.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(c)
				

			 	
				
				  During the Extension Year of July 1,
				  2007 through June 30, 2008, the Contractor’s daily rate(s) per vehicle
				  shall be augmented by an amount not to exceed whichever of the following
				  represents the least amount of actual increase: (i) the same percentage
				  by which the CPI as of May 2007 shall have increased over the CPI as of May
				  2006; or, (ii) the amount in dollars expressed as a percentage by which
				  the Contractor’s actual Total Allowable Costs during the Extension Year of
				  July 1, 2006 through June 30, 2007 shall have increased over each
				  Contractor’s actual Total Allowable Costs during the Extension Year of
				  July 1, 2005 through June 30, 2006, plus any
				  previously Unabsorbed Percentage Cost Increases from Extension Year 2000-2001
				  through 2006-2007 to the extent such Unabsorbed Percentage Cost Increases shall
				  not have been applied to prior extension year increases. 
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(d)
				

			 	
				
				  During the Extension Year of July 1,
				  2008 through June 30, 2009, the Contractor’s daily rate(s) per vehicle
				  shall be augmented by an amount not to exceed whichever of the following
				  represents the least amount of actual increase: (i) the same percentage
				  by which the CPI as of May 2008 shall have increased over the CPI as of May
				  2007;
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
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		or, (ii) the amount in dollars
		expressed as a percentage by which the Contractor’s actual Total Allowable
		Costs during the Extension Year of July 1, 2007 through June 30, 2008 shall
		have increased over the Contractor’s actual Total Allowable Costs during
		the Extension Year of July 1, 2006 through June 30, 2007, plus
		any previously Unabsorbed Percentage Cost Increases from Extension Year 2000-01
		through 2007-2008 to the extent such Unabsorbed Percentage Cost Increases shall
		not have been applied to prior extension year increases. 
	 

	 
			
				
				   
				

			 	
				
				  “(e)
				

			 	
				
				  During the Extension Year of July 1,
				  2009 through June 30, 2010, the Contractor’s daily rate(s) per vehicle
				  shall be augmented by an amount not to exceed whichever of the following
				  represents the least amount of actual increase: (i) the same percentage
				  by which the CPI as of May 2009 shall have increased over the CPI as of May
				  2008; or, (ii) the amount in dollars expressed as a percentage by which
				  the Contractor’s actual Total Allowable Costs during the Extension Year of
				  July 1, 2008 through June 30, 2009 shall have increased over the
				  Contractor’s actual Total Allowable Costs during the Extension Year of
				  July 1, 2007 through June 30, 2008, plus any previously
				  Unabsorbed Percentage Cost Increases from Extension Year 2000-2001 through
				  2008-2009 to the extent such Unabsorbed Percentage Cost Increases shall not
				  have been applied to prior extension year increases.
				

			 

 

	 
		“(2) Decrease in
		CPI. Anything in the foregoing payment
		increase provisions to the contrary notwithstanding, where there is a decrease
		in the regional consumer price index for the New York, New
		York–Northeastern, New Jersey area as based upon the index for all urban
		consumers (hereinafter expressed as ‘CPI-U’) during the preceding
		twelve month period, the amount to be paid to the Contractor in the succeeding
		extension year will reflect that decrease in a manner satisfactory to the New
		York State Education Department (hereinafter expressed as
		‘SED’).
	 

	 
		“(3) Special Costs for Drivers Covered by
		Statute. Anything in the foregoing
		payment increase provisions to the contrary notwithstanding, the BOE shall pay
		the Contractor each extension year for actual costs allowable pursuant to
		Education Law §305(14)(c)(i) under the following conditions,
		even if such reimbursement shall cause annual payments to exceed the relevant
		CPI increment. To be eligible for such payment, the Contractor shall provide to
		OPT a separate fully detailed written cost reimbursement request for
		reimbursement of expenses covered by Education Law
		§305(14)(c)(i), which shall be described for purposes of this Contract as
		‘special vehicle operator administrative costs,’ which reimbursement
		shall equal (a) the actual costs of qualifying criminal history and
		driver licensing testing fees attributable to special requirements of
		Vehicle and Traffic Law Articles 19 and 19–A, and (b) the actual
		costs of all diagnostic tests and physical performance tests that shall be
		deemed necessary by an examining physician or the Director to determine whether
		each applicant to drive a school bus under this Contract possesses the physical
		and mental ability to operate a school bus and to perform satisfactorily all
		other responsibilities of a school bus driver as required by this Contract and
		all applicable Federal, State of New York, City
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		7
	 

	 
		 
	 

	 
		 
	 

	 
		of New York and BOE laws, rules, regulations
		and policies.6 All Contractor cost claims under Education Law
		§305(14)(c)(i) shall be subject to review and/or audit by the BOE, its
		employees and agents. Upon BOE approval of Contractor cost claims under
		Education Law §305(14)(c)(i), the BOE shall pay the Contractor
		for such actual costs without interest. 
	 

	 
		“(4) Definitions. The
		definitions below control the meanings of the described terms wherever they
		appear in this Contract. These definitions add to and supplement any
		definitions or instructions expressed in the original Contract and, as such, do
		not supersede, revoke, replace, revise or limit any similar or analogous
		provisions in the original Contract.
	 

	 
		“(a) For Contracts under Serial Nos. 0070, 8108, G8805,
		G8891 and G9325, the following shall apply:
	 

	 
		“(i) Twenty-fourth (24th) Extension Year’
		means July 1, 2005 until June 30, 2006;
	 

	 
		“(ii) Twenty-fifth (25th) Extension Year’
		means July 1, 2006 until June 30, 2007;
	 

	 
		“(iii) Twenty-sixth (26th) Extension Year’
		means July 1, 2007 until June 30, 2008;
	 

	 
		“(iv) Twenty-seventh (27th) Extension Year’
		means July 1, 2008 until June 30, 2009;
	 

	 
		“(v) Twenty-eighth (28th) Extension Year’
		means July 1, 2009 until June 30, 2010.
	 

	 
		“(b) For Contracts under Serial No. 7165, the following
		shall apply:
	 

	 
		“(i) Ninth (9th) Extension Year’ means July 1, 2005
		until June 30, 2006;
	 

	 
		“(ii) Tenth (10th) Extension Year’ means July 1, 2006
		until June 30, 2007;
	 

	 
		“(iii) Eleventh (11th) Extension Year’ means July 1, 2007
		until June 30, 2008;
	 

	 
		“(iv) Twelfth (12th) Extension Year’ means July 1, 2008
		until June 30, 2009;
	 

	 
		“(v) Thirteenth (13th) Extension Year’ means July 1,
		2009 until June 30, 2010.
	 

	 
		“(c) The term ‘Consumer Price Index’ (herein
		expressed as ‘CPI’), as of a given date, is defined as that statistic
		of the United States Department of Labor or its successor agency, which the New
		York State Education Department (herein expressed as ‘SED’) deems as
		the ‘regional consumer price index for the New York, New
		York-Northeastern, New Jersey area, based upon the index for all urban
		consumers (CPI-U),’ according to Education Law
		§305(14)(a) as the same may be updated, revised or otherwise changed
		during the life of this Extension and Thirteenth Amendment Agreement. If
		Education Law §305(14)(a) shall be amended to permit stated or
		fixed percentage(s) of annual rate increase(s) for pupil transportation
		contract extensions, which increase(s) may exceed the applicable CPI
		increment(s), this Contract shall be deemed to be amended automatically and
		without the need for any ac-
	 

	 
		______________
	 

	 
		6 Allowable diagnostic tests and
		physical performance tests shall include pre-employment medical and physical
		performance tests and examinations and pre-employment alcohol and substance
		abuse tests. Allowable diagnostic and physical performance tests
		shall not include tests and examination performed during the
		course of a driver’s employment with the Contractor such as, but not
		limited to, random substance and/or alcohol abuse tests, post-accident
		substance and/or alcohol abuse tests, reasonable suspicion substance and/or
		alcohol abuse tests, and/or annual medical examinations.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		8
	 

	 
		 
	 

	 
		 
	 

	 
		tion by the parties by substituting such
		stated or fixed percentage(s) of increase in place of the actual percentage(s)
		of increase in the CPI in any extension year in which the CPI shall be lower
		that the stated or fixed percentage(s).
	 

	 
		“(d) The term ‘Contractor’s average cost per
		vehicle per day’ for a given extension year is defined as the
		Contractor’s ‘Total Allowable Costs’ for that extension year
		divided by the total number of ‘vehicle days.’
	 

	 
		“(e) The term ‘Total Allowable Costs’ is defined
		as the Contractor’s actual accrued costs related directly to
		transportation services provided to the BOE under this Contract but excluding
		all costs relating to Escorts.7
	 

	 
		“(f) The term ‘vehicle days’ is defined as the
		total number of ‘authorized vehicles’ the Contractor actually
		operates multiplied by the number of actual school days per Extension Year for
		the term of this Extension and Thirteenth Amendment Agreement,8
		except for certain additional vehicles which shall be treated in
		the manner hereinafter provided. 
	 

	 
		“(g) The term ‘authorized vehicles’ is defined as
		the total number of contract and additional vehicles, but excluding spare
		vehicles, that the Contractor shall have been granted expressly by the
		Director. If the Director shall grant the Contractor additional vehicles during
		any given Extension Year of this Extension and Thirteenth Amendment Agreement,
		such additional vehicles shall be counted among the ‘authorized
		vehicles’ during the first Extension Year in which such vehicles shall be
		awarded but only to the extent of the actual number of school days that the
		Contractor actually shall have operated the affected additional
		vehicles.9 During the succeeding Extension Year(s), such additional
		vehicles shall be counted as ‘authorized vehicles’ for all actual
		school days. If the Contractor has a 10-month Contract(s) and the Director
		shall grant the Contractor summer work beyond the normal 10 months from
		September to June, the summer vehicles only shall be exempt from
		inclusion in the cost justification process.
	 

	 
		“(h) The term ‘Cost Justification Financial
		Statement’ is defined as a written ‘review report’ prepared by a
		Certified Public Accountant (hereinafter expressed as ‘CPA’) or
		Public Accountant (hereinafter expressed as ‘PA’) licensed by the
		State of New York, except as
	 

	 
		______________
	 

	 
		7 Only for purposes
		of the annual Cost Justification Financial Statements for school bus escorts
		that the Contractor shall submit pursuant to Paragraph C, infra,
		this definition shall exclude the words at the end of the sentence, namely,
		“but excluding all costs relating to escorts.”
		Specifically, the preceding sentence shall apply
		to the Contractor, only if the Contractor shall elect to receive
		compensation and annual increases for school bus escort service under the
		traditional formula expressed in Paragraph C, infra.
	 

	 
		8 In calculating the
		Contractor’s average cost per vehicle day for purposes of determining rate
		augmentation under this Extension and Thirteenth Amendment Agreement, the
		actual number of days that vehicles shall operate (instead of a fixed number of
		days as provided under previous extension and amendment agreements) shall be
		applied for each Extension Year included in such calculation.
	 

	 
		9 This partial exclusion of
		additional vehicles during the first extension year of award shall not apply to
		any vehicles that the Contractor may obtain by assignment or other transfer of
		contract or by acquiring the corporate shares of another school bus
		contractor.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		9
	 

	 
		 
	 

	 
		 
	 

	 
		otherwise noted herein. Each Cost
		Justification Financial Statement shall include all of the facts and figures
		deemed necessary by the Director and/or the SED to provide a complete view of
		the Contractor’s cost increase claims for the applicable comparative
		periods specified in this Extension and Thirteenth Amendment Agreement. Each
		review report shall state that a review shall have been performed in accordance
		with AU623, et seq., as established and periodically updated by the
		American Institute of Certified Public Accountants (hereinafter expressed as
		“AICPA”), and the BOE Office of Auditor General’s manual of cost
		increase justification rules and procedures (hereinafter expressed as “OAG
		Manual”) as of the date of a given review report, and that the information
		in each Cost Justification Financial Statement shall have been based upon the
		representations of the Contractor’s management. Each review report shall
		describe the nature of a review as distinct from an audit and shall describe
		the standard procedures that the CPA/PA shall have performed, e.g., an inquiry
		and an analytical review. Each review report shall give the limited assurance
		that, based upon the review, the CPA/PA shall not have been aware of any
		material modifications that should be made to the Cost Justification Financial
		Statement for it to be in conformity with AU623, et seq., as
		established and periodically updated by the AICPA, and the OAG Manual. A
		compilation report is insufficient to qualify as a Cost Justification
		Statement. In addition, the CPA/PA preparing each review report must state that
		he/she shall have studied the cost justification manual supplied by the Board
		and shall have applied the standards contained in the said OAG Manual to the
		development of each Cost Justification Financial Statement. If the Contractor
		shall not have had a CPA-audited financial report performed for any purpose
		within the three (3) years before June 30, 2005, then the Contractor must
		submit an audited Cost Justification Financial Statement by a CPA for its first
		or second such statement under this Extension and Thirteenth Amendment
		Agreement.10 The CPA/PA who shall prepare each Cost Justification
		Financial Statement must have no interest in this Contract, the Contractor
		and/or any entity affiliated in any manner with the Contractor and must so
		certify in writing in each review report. Each Cost Justification Financial
		Statement shall be in a form prescribed by the Director as approved by
		SED.
	 

	 
		“(5) Cost
		Justification Financial Statements.
		Education Law §305(14) requires the Contractor to substantiate
		any cost increases that he/she claims to justify annual payment increases
		during the term of this Extension and Thirteenth Amendment Agreement. The
		Director shall determine whether to approve all or any portion(s) of the claims
		in each of the Contractor’s annual Cost Justification Financial Statements
		in accordance with the following:
	 

	 
		______________
	 

	 
		10 Such a CPA-audited Cost
		Justification Financial Statement must comply in all respects with AR 9100.63
		entitled, “Special Purpose Financial Presentations to Comply with
		Contractual or Regulatory Provisions,” as established and periodically
		updated by the AICPA.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		10
	 

	 
		 
	 

	 
		 
	 

	 
		“(a) To substantiate any payment increases11
		under ARTICLE V–A or 28(C) during the Extension Year of July 1, 2005 to
		June 30, 2006, the Contractor must submit by September 30, 2005, (i) a
		Cost Justification Financial Statement(s) detailing Total Allowable Costs
		incurred by the Contractor for all its operations and, separately, for its
		operations under this Contract for Extension Years 2004-2005 and 2003-2004, and
		(ii) a distinct Cost Justification Financial Statement(s) detailing
		Total Allowable Costs incurred by the Contractor for all its operations and,
		separately, for its operations under the Contract for each Extension Year for
		which application shall be made for any Unabsorbed Percentage Cost Increases.
		
	 

	 
		“(b) To substantiate any payment increases under ARTICLE
		V–A or 28(C) during the Extension Year of July 1, 2006 to June 30, 2007,
		the Contractor must submit by September 30, 2006, (i) a Cost
		Justification Financial Statement(s) detailing the Total Allowable Costs
		incurred by the Contractor for all its operations and, separately, for its
		operations under this Contract for Extension Years 2005-2006 and 2004-2005, and
		(ii) a distinct Cost Justification Financial Statement(s) detailing the
		Total Allowable Costs incurred by the Contractor for all its operations and,
		separately, for its operations under this Contract for each Extension Year for
		which application shall be made for any Unabsorbed Percentage Cost Increases.
		
	 

	 
		“(c) To substantiate any payment increases under ARTICLE
		V–A or 28(C) during the Extension Year of July 1, 2007 to June 30, 2008,
		the Contractor must submit by September 30, 2007, (i) a Cost
		Justification Financial Statement(s) detailing the Total Allowable Costs
		incurred by the Contractor for all its operations and, separately, for its
		operations under this Contract for Extension Years 2006-2007 and 2005-2006, and
		(ii) a distinct Cost Justification Financial Statement(s) detailing the
		Total Allowable Costs incurred by the Contractor for all its operations and,
		separately, for its operations under this Contract for each Extension Year for
		which application shall be made for any Unabsorbed Percentage Cost Increases.
		
	 

	 
		“(d) To substantiate any payment increases under ARTICLE
		V–A or 28(C) during the Extension Year of July 1, 2008 to June 30, 2009,
		the Contractor must submit by September 30, 2008, (i) a Cost
		Justification Financial Statement(s) detailing the Total Allowable Costs
		incurred by the Contractor for all its operations and, separately, for its
		operations under this Contract for Extension Years 2007-2008 and 2006-2007, and
		(ii) a distinct Cost Justification Financial Statement(s) detailing the
		Total Allowable Costs incurred by the Contractor for all its operations and,
		separately, for its operations under this Contract for each Extension Year for
		which application shall be made for any Unabsorbed Percentage Cost Increases.
		
	 

	 
		“(e) To substantiate any payment increases under ARTICLE
		V–A or 28(C) during the Extension Year of July 1, 2009 to June 30, 2010,
		the Contractor must submit by September 30,
	 

	 
		______________
	 

	 
		11 The Fixed Percentage Increase
		provided hereunder, including either the five-and-sixty-six-hundredths percent
		(5.66%) increase for contracts under Serial Nos. 0070, 8108, G8805, G8891 and
		G9325 or the three-and-seventy-four-hundredths percent (3.74%) increase for
		contracts under Serial No. 7165, shall not be subject to any
		requirement for cost justification under this Extension and Thirteenth
		Amendment Agreement. Cf.
		ARTICLE
		V-A or ARTICLE 28(C),
		supra, and ARTICLE XIX,
		Paragraph (B)(2)(a)(i), infra.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		11
	 

	 
		 
	 

	 
		 
	 

	 
		2009, (i) a Cost Justification
		Financial Statement(s) detailing the Total Allowable Costs incurred by the
		Contractor for all its operations and, separately, for its operations under
		this Contract for Extension Years 2008-2009 and 2007-2008, and (ii) a
		distinct Cost Justification Financial Statement(s) detailing the Total
		Allowable Costs incurred by the Contractor for all its operations and,
		separately, for its operations under this Contract for each Extension Year for
		which application shall be made for any Unabsorbed Percentage Cost Increases.
		
	 

	 
		“(f) In each
		annual Cost Justification Financial Statement, the Contractor must exclude all
		costs for escorts. The Contractor shall supply in each annual Cost
		Justification Financial Statement all data required by SED related to this
		Contract, and the submittal shall include, but shall not limited to,
		SED-approved cost justification forms. The Contractor must supply promptly all
		additional cost data as required by the BOE or SED.
	 

	 
		“(g) Until six (6) years after completion of its services
		hereunder or six (6) years after the termination date of this Extension and
		Amendment Agreement, whichever shall occur later, the Contractor shall maintain
		complete and correct books and records related to all aspects of the
		Contractor’s obligations hereunder. Records must be maintained separately,
		so as to identify clearly the expenses applicable to this Contract, all
		previous extension and amendment agreements, and this Extension and Amendment
		Agreement and must be distinguishable from all other costs not incurred under
		this Contract, all previous extension and amendment agreements, and this
		Extension and Amendment Agreement. Except as provided in this subparagraph, all
		other provisions of this Contract, as amended, that relate to the maintenance
		of records shall remain in full force and effect.
	 

	 
		“(6) Required
		Analysis of Costs. To determine the
		allowable increase in costs for a given extension year, as specified in ARTICLE
		V–A(1) or 28(C)(1) of this Contract, the following analysis of the Cost
		Justification Financial Statement must be undertaken:
	 

	 
		 
	 

	 
			
				
				  “Step 1:
				

			 	
				
				   
				

			 	
				
				  Divide the total applicable annual
				  operating costs by the number of vehicle days for both the base year and the
				  year previous to the base year to determine the average daily cost per vehicle
				  for each of those years. The base year is the year immediately before the
				  extension year to which a rate increase is to be applied.
				

			 
	
				
				  “Step 2:
				

			 	
				
				   
				

			 	
				
				  Subtract the average daily cost per
				  vehicle for the year previous to the base year from the average daily cost per
				  vehicle for the base year to determine the increase in the average daily cost
				  per vehicle.
				

			 
	
				
				  “Step 3:
				

			 	
				
				   
				

			 	
				
				  Divide the increase in the average
				  daily cost per vehicle by the average daily cost per vehicle for the year
				  previous to the base year to determine the percent increase in the average
				  daily cost per vehicle.
				

			 
	
				
				  “Step 4:
				

			 	
				
				   
				

			 	
				
				  Compare the percent of increase in
				  the average daily cost per vehicle to the percentage by which the CPI as of May
				  of the base year shall have increased over 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		12
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  the CPI as of May of the year
				  previous to the base year. Whichever is the lesser of the two (2) percentages
				  will be the allowable increase applied to the daily rate(s) for the affected
				  Extension Year.
				

			 
	
				
				  “Step 5:
				

			 	
				
				   
				

			 	
				
				  For Extension Years 2005-06 through
				  2009-10, repeat Steps 1-4. For each such Extension Year, determine the percent
				  of increase in the average daily cost per vehicle. If the percent of increase
				  in the average daily cost per vehicle resulting in Step 3 shall be insufficient
				  to justify fully the CPI increment in Step 4, add any previously Unabsorbed
				  Percentage Increases from the applicable Extension Year(s) expressed heretofore
				  at Paragraphs (1)(a)-(e) of ARTICLE V–A(1) or 28(C) of this
				  Contract.
				

			 

 

	 
		“(7) Alternative Comparison of
		Costs. As an
		alternative to the procedures expressed in Subparagraph (6),
		supra, to determine the allowable increase in daily rates per vehicle
		for Extension Years 2005-06 through 2009-10, the Contractor may elect with
		respect to each such Extension Year to utilize the percentage increase in the
		Contractor’s Total Allowable Costs on an aggregate business entity basis
		with respect to each of the applicable base years as compared to each of the
		years prior thereto, respectively. Nevertheless, the Contractor must undertake
		the analysis described in the preceding sentence in the form of an annual Cost
		Justification Financial Statement as defined in Paragraph 4(h),
		supra. If the Contractor shall not make the foregoing election on or
		before August 15th of each Extension Year, the analysis of the Cost
		Justification Financial Statement, as provided in Subparagraph (6),
		supra, shall apply and govern.”
	 

	 
		“(8) Allowable Cost
		Increases. Total Allowable Costs are
		limited by the following: costs not attributable to the Contractor’s
		operations under this Contract, costs that are not ordinary and/or reasonable,
		costs that are not documented, and/or costs disallowed by the SED and/or by BOE
		auditors for non-compliance with the definition of Total Allowable Costs as
		limited by this Paragraph (8). Such costs shall be subject to
		disallowance by the BOE and are not permitted to justify increases of the daily
		rate(s) per vehicle. The Director shall have the right to prescribe
		miscellaneous standardized cost categories for all contractors including the
		Contractor.
	 

	 
		“(9) Access to
		Subcontractors. If with the
		Director’s approval the Contractor subcontracts any portion of the
		services under this Contract, the Contractor must include in any such
		subcontract a provision that allows full and unimpeded access by the BOE, the
		SED and/or the New York City Office of the Comptroller to the books and records
		of a subcontractor for inspection, audit and copying purposes. The Contractor
		does hereby agree and warrant to render all necessary assistance to obtain any
		requested documents from subcontractors. The Contractor’s inability to
		obtain requested documentation from any subcontractors shall not excuse a
		failure to provide the documentation as a means to justify payment increases.
		
	 

	 
		“(10) Absence of Cost
		Justification Financial Statement. The
		Contractor’s failure to submit an annual Cost Justification Financial
		Statement by the deadline date as above expressed will result in the forfeiture
		of any increase later justified for the period from the service start date to
		the day the
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		13
	 

	 
		 
	 

	 
		 
	 

	 
		statement is received at OPT, unless the
		Director determines that reasonable circumstances exist to excuse the
		Contractor’s late submittal.
	 

	 
		“(11) Adjustments to
		Later Payments. Based on the BOE’s
		audit of the Contractor’s annual Cost Justification Financial Statements
		and financial records, the BOE may make any necessary adjustments in any later
		payments that become due and owing to the Contractor to compensate for any
		excesses of payments over cost increases. Notwithstanding the foregoing, the
		BOE shall make no adjustment in payments or the rate(s) of payment due the
		Contractor and shall make no claim for overpayments to the Contractor, unless
		the BOE audit, upon which such adjustment or claim is based, shall have been
		completed and submitted to the Contractor within two (2) years after the date
		on which the Contractor shall have submitted to the Board the Cost
		Justification Financial Statement and final supporting documentation for such
		Cost Justification Financial Statement,12 which is the subject of
		such audit. The limitation upon payment adjustments expressed in the preceding
		sentence shall not apply to any payment adjustment(s) required by any
		applicable laws, rules and/or regulations as applied by governmental agencies,
		other than the Board, which may apply to this Contract.
	 

	 
		“(12) Refund of
		Overpayment. The Contractor agrees and
		warrants further to refund all additional monies due to the BOE within thirty
		(30) days of the BOE’s final findings regarding any given Cost
		Justification Financial Statement (provided such final findings are completed
		and submitted to the Contractor not later than two years after the submission
		to the Board of such Cost Justification Statement), if the amount of a given
		extension year’s payment excess over allowable cost increase is greater
		than any payments due and owing for the balance of a given extension year. The
		limitation upon refunds expressed in the preceding sentence shall not apply to
		any refund(s) required by any applicable laws, rules and/or regulations as
		applied by governmental agencies, other than the Board, which may apply to this
		Contract.
	 

	 
		“(13) Unabsorbed Cost Carry-Forward Provision. For any extension year in which the Contractor
		shall not be able to justify the maximum allowable rate(s)
		increase(s) for any one or more of Extension Years 2005-06 to 2009-10, the
		Contractor shall be entitled to use the Unabsorbed Percentage Cost Increases,
		if any, as a supplemental device to achieve a greater allowable rate(s)
		increase(s). To be eligible to apply Unabsorbed Percentage Cost Increases, the
		Contractor must detail in writing the Total Allowable Costs from each set of
		two comparison years from which any Unabsorbed Percentage Cost Increases shall
		be derived as well as the total percentage of actual cost increase and the
		unabsorbed percentage of cost increase. When eligible and entitled hereunder,
		the Contractor may carry forward ‘below-the-line’ any previously
		Unabsorbed Percentage Cost Increases from any sets of comparison periods, as
		heretofore expressed at Paragraph 1(a)-(e) of ARTICLE V-A or 28(C) of
		the Contract, to supplement those cost increases that are used to justify
		augmentations of the daily rate(s) per vehicle for Extension Years 2005-06
		through 2009-10.
	 

	 
		______________
	 

	 
		12 If the Contractor shall amend
		or otherwise change the Cost Justification Financial Statement and any
		supporting documentation after having made an initial submittal to the BOE, the
		two year limitation period shall be tolled and shall start again with the date
		of the submittal of each such amendment or other change.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		14
	 

	 
		 
	 

	 
		 
	 

	 
		The term ‘below-the-line’ means
		previously unabsorbed cost increases, which are carried forward, are deemed as
		allocated to the Extension Year(s) of accrual and not to the subsequent
		Extension Year(s) to which they are carried forward and applied both
		supplementally and ‘below-the-line’ as prior cost increases that have
		not as yet been absorbed by the annual CPI increment.13 Once an item
		of previously Unabsorbed Percentage Cost Increases shall have been carried
		forward and applied ‘below-the-line’ to a given Extension Year, that
		item may not be used again in any later Extension Year.
	 

	 
		“(14) Inconsistencies.
		In the event of any inconsistencies between any other provisions of the
		Contract and ARTICLES V-A and/or 28(C) hereof, the provisions of ARTICLES V-A
		and/or 28(C) shall prevail and govern in every case and for all intents and
		purposes.”
	 

	 
		(C)
		ESCORTS
	 

	 
		Throughout the term of this Extension and
		Thirteenth Amendment Agreement, if the Contractor holds a contract(s) under
		Serial No. 7165 and shall not have elected to receive Escort Cost Reimbursement
		under Paragraph D hereof, then the Contractor shall not be permitted any
		special or separate increases in any payment or allowance for escorts,
		i.e., the Contractor’s total rate(s) per vehicle, which
		includes the cost of an escort(s), shall be increased each Extension Year
		pursuant to the provisions expressed heretofore at Paragraph B.
		Regarding contracts under Serial Nos. 0070, 8108, G8805, G8891 and G9325
		only, Article XIX entitled, “ESCORTS,” as amended
		previously, is hereby amended further so that Paragraph A(2),
		as numbered by the First Amendment Agreement, shall read as follows for the
		term of this Extension and Thirteenth Amendment Agreement, except that this
		Paragraph C (with the exception of subparagraph 2(g), infra), shall
		not apply to the Contractor, if it shall elect to receive escort payments under
		Paragraph D, infra:
	 

	 
		“(2) However, the parties agree that, for only so long as
		and only to the extent that the New York
		City Administrative Code and Charter
		shall require the BOE to utilize escorts on special education school bus runs,
		the Contractor shall continue to provide such escorts and substitute escorts in
		addition to the vehicle operators, as hereinafter allowed, through June 30,
		2010, and that:
	 

	 
		“(a) Escort Compensation. Except for (i) overtime and (ii)
		contractors who shall have exercised the election for Escort Cost Reimbursement
		under Paragraph (B) of this ARTICLE XIX, the BOE shall compensate the Contractor for each full
		day for each escort who shall provide actual service under this Contract in an
		amount to be calculated in the following
	 

	 
		 
	 

	 
		______________
	 

	 
		13 By way of example, from the
		23rd to 24th Extension Years and from the 24th
		to 25th Extension Years, the Contractor’s costs increased by
		two percent (2%) and three percent (3%), respectively. From 23rd to
		24th Extension Years and from the 24th to 25th
		Extension Years, the CPI increased by one-and-one-half percent (1.5%) and
		two-and-one-half percent (2.5%), respectively. From 25th to
		26th Extension Years, the CPI increased by four percent (4%), while
		the Contractor’s actual costs grew by only three percent (3%). Although
		the Contractor’s two discrete one-half percent (0.5%) cost increases above
		the allowable CPI caps accrued in the 24th and 25th
		Extension Years, respectively, each may be carried forward and applied
		below-the-line to supplement the Contractor’s cost growth from the
		25th to 26th Extension Years, which was lower than the
		CPI.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		15
	 

	 
		 
	 

	 
		 
	 

	 
		manner subject to the Director’s
		approval of all or any portion(s) of the Contractor’s claims in each of
		the below-described annual Escort Cost Justification Financial
		Statements:
	 

	 
		“(i) During the 24th Extension Year, the BOE
		shall increase the ‘Base Escort Daily Compensation Rate’ by
		five-and-sixty-six-hundredths percent (5.66%),14 plus
		an amount to be derived by applying Paragraph (A)(2)(b) hereinafter, or
		such lesser amount that represents the audited and approved increase over the
		Base Escort Daily Compensation Rate paid to the contractor during the
		23rd Extension Year. Also, the BOE shall pay ‘Wage Accrual
		Compensation’ in the exact amount the Contractor actually paid either to
		or for escorts during the 24th Extension Year, if any, and only when
		known after a BOE audit and which was required to be paid. With respect to the
		preceding sentence, the Contractor may receive as Wage Accrual Compensation for
		the 24th Extension Year an amount per escort that is more than ten
		percent (10%) per escort above the total reimbursed costs for wage accruals as
		of June 30, 2005 but only to the extent that such excess amounts
		shall have been required by an express provision of a written collective
		bargaining agreement that shall have been concluded and executed before the
		start of this Extension and Thirteenth Amendment Agreement.
	 

	 
		“(ii) During the 25th Extension Year, the BOE
		shall increase the ‘Base Escort Daily Compensation Rate’ in an amount
		to be derived by applying Paragraph (A)(2)(b) hereinafter, or such
		lesser amount that represents the audited and approved increase over the Base
		Escort Daily Compensation Rate paid to the contractor during the
		24th Extension Year. Also, the BOE shall pay ‘Wage Accrual
		Compensation’ in the exact amount the Contractor actually paid either to
		or for escorts during the 25th Extension Year, if any, and only when
		known after a BOE audit and which was required to be paid. With respect to the
		preceding sentence, the Contractor may receive as Wage Accrual Compensation for
		the 25th Extension Year an amount per escort that is more than ten
		percent (10%) per escort above the total reimbursed costs for wage accruals as
		of June 30, 2006 but only to the extent that such excess amounts
		shall have been required by an express provision of a written collective
		bargaining agreement that shall have been concluded and executed before the
		start of this Extension and Thirteenth Amendment Agreement.
	 

	 
		“(iii) During the
		26th Extension Year, the BOE shall increase the ‘Base Escort
		Daily Compensation Rate’ in an amount to be derived by applying
		Paragraph (A)(2)(b) hereinafter or such lesser amount that represents
		the audited and approved increase over the Base Escort Daily Compensation Rate
		paid to the contractor during the 25th
	 

	 
		______________
	 

	 
		14 The Fixed Percentage Increase
		provided hereunder, including either the five-and-sixty-six-hundredths percent
		(5.66%) increase for contracts under Serial Nos. 0070, 8108, G8805, G8891 and
		G9325 or the three-and-seventy-four-hundredths percent (3.74%) increase for
		contracts under Serial No. 7165, shall not be subject to any
		requirement for cost justification under this Extension and Thirteenth
		Amendment Agreement. Cf. ARTICLE V-A or
		ARTICLE
		28(C), supra.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		16
	 

	 
		 
	 

	 
		 
	 

	 
		Extension Year. Also, the BOE shall pay
		‘Wage Accrual Compensation’ in the exact amount the Contractor
		actually paid either to or for escorts during the 26th Extension Year, if any,
		and only when known after a BOE audit and which was required to be paid. No
		contractor may receive as Wage Accrual Compensation an amount in the aggregate
		that is more than ten percent (10%) above the total reimbursed costs for wage
		accruals as of June 30, 2007.
	 

	 
		“(iv) During the
		27th Extension Year, the BOE shall increase the ‘Base Escort
		Daily Compensation Rate’ in an amount to be derived by applying
		Paragraph (A)(2)(b) hereinafter or such lesser amount that represents the
		audited and approved increase over the Base Escort Daily Compensation Rate paid
		to the contractor during the 26th Extension Year. Also, the BOE
		shall pay ‘Wage Accrual Compensation’ in the exact amount the
		Contractor actually paid either to or for escorts during the 27th
		Extension Year, if any, and only when known after a BOE audit and which was
		required to be paid. No contractor may receive as Wage Accrual Compensation an
		amount in the aggregate that is more than ten percent (10%) above the total
		reimbursed costs for wage accruals as of June 30, 2008.
	 

	 
		“(v) During the
		28th Extension Year, the BOE shall increase the ‘Base Escort
		Daily Compensation Rate’ in an amount to be derived by applying
		Paragraph (A)(2)(b) hereinafter or such lesser amount that represents the
		audited and approved increase over the Base Escort Daily Compensation Rate paid
		to the contractor during the 27th Extension Year. Also, the BOE
		shall pay ‘Wage Accrual Compensation’ in the exact amount the
		Contractor actually paid either to or for escorts during the 28th
		Extension Year, if any, and only when known after a BOE audit and which was
		required to be paid. No contractor may receive as Wage Accrual Compensation an
		amount in the aggregate that is more than ten percent (10%) above the total
		reimbursed costs for wage accruals as of June 30, 2009.
	 

	 
		“(b)
		Annual Increase of the Base Escort Daily
		Compensation Rate. With the exception
		of Contractors who shall have exercised the election for Escort Cost
		Reimbursement under ARTICLE XIX,
		Paragraph (B) hereof, each Extension Year the BOE will augment the
		amount of the Base Escort Daily Compensation Rate according to the payment
		increase limits expressed herein at ARTICLE V–A(1), i.e.,
		Paragraph (B)(1) above, provided, the Contractor
		shall justify each such increase, if any, by submitting a separate, annual
		‘Escort Cost Justification Financial Statement’ according to the same
		terms, conditions and deadlines expressed in ARTICLE V–A(2)–(13),
		i.e., Paragraphs
		(B)(2) to (B)(13) above.
		This provision does not affect payment for overtime escort services, which is
		governed separately at Article XIX, Paragraph (A)(2)(c), i.e.,
		Paragraph (C)(2)(c) below.
	 

	 
		“(c)
		Payment for Overtime. Except if
		the Contractor shall exercise the election for Escort Cost Reimbursement under
		ARTICLE XIX,
		Paragraph (B) hereof, where the Contractor actually supplies
		scheduled overtime escort services pursuant to BOE authorization, the BOE
		
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		17
	 

	 
		 
	 

	 
		 
	 

	 
		shall reimburse the Contractor for such
		services in the exact amount of the costs for overtime wages and statutory
		fringe benefits. No reimbursement will be permitted for occasional or episodic
		overtime. ‘Overtime’ is defined as service that exceeds eight (8)
		hours within any ten (10) hour daily period. The hourly rate for overtime
		escort services will not exceed one-and-one-half times the regular hourly wage
		rate.15
	 

	 
		“(d)
		Monthly Advance Payment for Escort
		Services. On or about the first school
		day of each calendar month, the BOE will pay an eligible contractor in advance
		an amount equal to the anticipated usage of escort service for that month,
		excluding overtime. For each month’s overtime claims, the BOE will pay the
		Contractor only after receipt and approval of a voucher on a BOE form, which
		will contain such detail as the BOE may require to confirm the
		Contractor’s claims and which will be subject to BOE audit.
	 

	 
		“(i) Where the
		BOE makes payments to the Contractor in excess of what is properly due and
		owing under PARAGRAPH 
		(A)(2)(B), supra, the BOE
		may recoup such amounts from future payments to the Contractor, request the
		Contractor to refund such amounts, or take whatever other actions are necessary
		to retrieve excessive payments. Where the BOE requests the Contractor to make a
		refund, the Contractor will remit not later than next monthly payment after the
		Contractor’s receipt of BOE audit findings.
	 

	 
		“(ii) Where the
		Contractor elects to delegate escort services to a subcontractor, the
		Contractor may direct the BOE to make payments in the full amounts or any
		portions thereof directly to the subcontractor. The Contractor must make such
		payment directions in writing on a form approved by the BOE.
	 

	 
		“(e)
		Compliance with Administrative
		Code. The Contractor must provide all
		the escorts necessary to perform all of the work covered by the Contract
		including additional and spare vehicles. The Contractor must have sufficient,
		qualified and approved personnel to enable the Contractor to dispatch
		substitute escorts promptly if, when and where necessary to ensure continuous,
		uninterrupted and punctual service in each and every instance. The Contractor
		must operate every vehicle for the transportation of handicapped children in
		strict adherence to the provisions of New York City Administrative Code §19-603(a)-(b). If the law shall be amended during
		the term of this Extension and Thirteenth Amendment Agreement to eliminate the
		requirement of escorts, the Contractor must cease to provide escorts upon
		thirty (30) days notice from the BOE to that effect. After the effective date
		of the notice, the BOE and the City of New York shall not be obligated to the
		Contractor or any other party for the provision of escort services.
	 

	 
		______________
	 

	 
		15 For contracts under Serial No.
		7165, the overtime rate for vehicle, driver and escort, i.e., total
		school bus services, is a flat ten percent (10%) of the applicable Regular or
		Extended Service Rate per hour of overtime service with pro-rated payments in
		fifteen (15) minute increments (rounded up from any lesser amounts of time) for
		overtime service of less than one (1) hour. For an explanation of Regular,
		Extended and Additional Service Rates, see Contract
		Serial No. 7165, ARTICLE
		28(A).
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		18
	 

	 
		 
	 

	 
		 
	 

	 
		“(f)
		Basic, Refresher and Additional Training
		for Special Education Escorts. The
		Contractor shall arrange for BOE approved basic escort training courses. Each
		escort must complete the American Red Cross Multi-Media Starter Course in First
		Aid. This course shall provide the knowledge and skills called for in
		situations where emergency first aid care is required and medical assistance is
		not excessively delayed. The Multi-Media Starter in First Aid also instructs on
		personal safety and accident prevention so that a person can learn the causes
		of accidents and act to eliminate or minimize such causes.
	 

	 
		“(i) The escorts
		(attendants/matrons) must meet the requirements for course completion, which
		includes taking a written examination, receiving a satisfactory grade and being
		issued a certificate. Each escort must submit to OPT a certificate as proof of
		course completion. Every escort (attendant/matron) shall take the refresher
		course once every three (3) years and furnish to OPT evidence of completion of
		the course.
	 

	 
		“(ii) With the
		exception of Contractors who have exercised the election for Escort Cost
		Reimbursement under ARTICLE XIX, Paragraph
		(B) hereof, the
		Contractor understands and agrees that the costs for such course required by
		the Board will not be borne by the Board of Education.
	 

	 
		“(g)
		Escort Subcontractor. The Contractor may delegate performance of escort
		services to an acceptable subcontractor; however, the Contractor will remain
		responsible for all pertinent contractual obligations. The Director will have
		sole and final discretion to approve or disapprove at any time the
		Contractor’s particular choice of an initial or replacement escort
		subcontractor. Whereupon the BOE requests new, updated or revised information
		about any subcontractor, the Contractor must supply the data immediately and/or
		secure the cooperation of the affected subcontractor to make full and prompt
		disclosure of any information.”
	 

	 
		(D) ESCORT COST REIMBURSEMENT
	 

	 
		Contracts under Serial Nos. 0070, 8108,
		G8805, G8891 and G93325 are amended at ARTICLE
		XIX entitled,
		“ESCORTS,” by
		re-lettering as “Paragraph
		C” the existing “Paragraph B” entitled, “Standards,” and by
		adding a new “Paragraph
		B” entitled, “Alternative Payment Method for
		Escorts,” and contracts under Serial No. 7165 are amended by
		adding a new “ARTICLE
		28,” “Paragraph (D)” entitled, “ALTERNATIVE
		PAYMENT
		METHOD
		FOR SPECIAL EDUCATION ESCORTS,” both of
		which shall read as follows for the period of this Extension and Thirteenth
		Amendment Agreement:
	 

	 
		“(1) Election for Escort Cost
		Reimbursement. For Extension Years starting in 2005-2006 and
		continuing through the period of this Extension and Thirteenth Amendment
		Agreement, contracts under Serial Nos. 0070, 8108, G8805, G8891 and G9325 and
		contracts under Serial No. 7165 may elect, on or before June 1, 2005, by
		execution and delivery to the Board of a written election notice in the form
		annexed hereto, to receive full reimbursement from the Board for all costs and
		expenses which the Contractor is or shall become legally obligated to incur in
		connection with the employment, training and qualification of escorts provided
		by the Contractor in 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		19
	 

	 
		 
	 

	 
		 
	 

	 
		accordance with the terms of this Contract
		including, but not limited, to the costs and expenses as itemized on the
		‘Schedule of Special Education Escort Costs,’ annexed hereto and made
		part hereof as “Attachment
		B” (herein expressed collectively
		as ‘Escort Costs’). Escort Costs shall not include (i) future
		adjustments in wages or benefits which exceed the rate of any such adjustment
		granted to the Contractors’ drivers; (ii) compensation for
		‘Shape’ escorts in excess of six percent (6%) of the number of
		Escorts required on vehicles provided by the Contractor; and, (iii) Escort
		Costs which accrued prior to June 30, 2005. In addition to the reimbursement of
		Escort Costs, Contractors making the election hereunder shall be paid an
		administrative fee for providing such escorts, which fee shall equal five
		percent (5%) of the Contractor’s Escort Costs. For all contracts under
		Serial No. 7165, the Contractor shall not be eligible to be reimbursed for the
		actual costs of escort overtime under this Paragraph D or
		elsewhere in this Contract.
	 

	 
		“(2) Termination of Other Escort
		Compensation. Commencing the 2005-06 Extension Year, other than
		Escort Cost Reimbursement under Subparagraph (1), supra:
		(i) Contractors under contract Serial Nos. 0070, 8108,
		G8805, G8891 and G9325 making the election for Escort Cost Reimbursement shall
		receive no further or additional escort compensation pursuant to
		Paragraphs (A)(2)(a), (b)
		and (c) of
		Article XIX of such contracts; and, (ii) the daily rate per
		vehicle of Contractors under Serial No. 7165 making such election for Escort
		Cost Reimbursement shall be reduced (prior to application of the 3.74% and CPI
		increases as provided for in Paragraph
		1(a) of Article 28(C) of
		such contracts) by an amount equal to (a) the original
		bid amount specified for escort services per vehicle in such Contractor’s
		bid under contract Serial No. 7165, plus (b) a percentage of such escort bid
		amount equal to the aggregate of all percentage increases of the daily rate per
		escort paid to such Contractor through the 2004-2005 Extension
		Year.16
	 

	 
		“(3) Procedure for Contractors Electing Escort Cost
		Reimbursement.
	 

	 
		“(a) Initial Escort
		Cost Estimate. On or before August 5,
		2005, each Contractor who shall have elected to receive Escort Cost
		Reimbursement hereunder, shall submit to the Board a statement, certified by
		the Contractor’s Chief Financial Officer and Chief Executive Officer, of
		its Escort Costs on a per contract, per escort, per day basis (hereinafter
		expressed as ‘Daily Escort Costs’) for the period of September 1,
		2004 to June 30, 2005. Such Escort Costs shall not include (i) escort
		health and welfare costs incurred for the months of July and August 2005; and,
		(ii) the amount of wage accrual costs. The Escort Costs
		shall be increased by the CPI percentage increase applied to the
		Contractor’s daily rate per vehicle for the 2005/2006 Extension Year
		pursuant to the Payment Provisions set forth in ARTICLE
		(B) of
		this Extension and Thirteenth Amendment Agreement. Starting September 1, 2005,
		and at the beginning of each month thereafter (but excluding the months of July
		and August) for the term of this Extension and Thirteenth Amendment Agreement,
		the Board shall pay to the Contractor in advance an amount equal to such Daily
		Escort Cost (as such amount 
	 

	 
		______________
	 

	 
		16 The foregoing to the contrary
		notwithstanding, for contracts under Serial No. 7165, the daily rate per escort
		shall not be deducted from the Total Daily Rate per Vehicle for
		purposes of calculating the Extended Service Rate, the Additional Service Rate
		(i.e., Overtime), the Field Trip Rate, and/or the Extended
		and Additional Service Rate.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		20
	 

	 
		 
	 

	 
		 
	 

	 
		may be adjusted from time to time pursuant
		to subparagraphs (b) and (c),
		infra) multiplied by the number of school days and by the
		number of Escorts and Shapes employed for such month (hereinafter expressed as
		‘Monthly Escort Reimbursement’) and an administrative fee
		(hereinafter expressed as ‘Administrative Fee’) equal to five percent
		(5%) of the Monthly Escort Cost Reimbursement.
	 

	 
		“(b) Mid-Year Certification. On or before February 5th of each Extension
		Year, the Contractor shall submit to the Board a statement certified by its
		Chief Financial Officer and Chief Executive Officer (i) of the actual
		amount of the aggregate Escort Costs incurred by the Contractor in the months
		of September through December of such Extension Year (excluding Escort Health
		and Welfare costs incurred for the months of July and August and the amount of
		wage accrual costs), (ii) the
		aggregate amount of the Monthly Escort Cost Reimbursement received by the
		Contractor from the Board for such time period (excluding Escort Cost
		Reimbursement, Administrative Fees and wage accrual costs received under
		subparagraph (d), infra), and
		(iii) the aggregate amount of Administrative Fees received by
		the Contractor from the Board for such time period, together with such other
		documentation as may be reasonably requested by the Board in order to
		substantiate the actual Escort Costs incurred by the Contractor. If the actual
		Escort Costs incurred plus applicable Administrative Fee for such time period
		shall exceed the amount of Monthly Escort Cost Reimbursement and Administrative
		Fee paid to the Contractor for such time period, the Board, by not later than
		the next monthly payment following the receipt of such certification, shall pay
		to the Contractor the amount of any such difference, and the amount of the
		Monthly Escort Cost Reimbursement and Administrative Fee for the remaining
		months of March through June of such Extension Year shall be increased to
		reflect the Daily Escort Cost based on such actual incurred costs. If the
		actual Escort Costs incurred by the Contractor together with applicable
		Administrative Fee shall be less than the amount of the Monthly Escort Cost
		Reimbursement and Administrative Fee paid to the Contractor for such time
		period, the Board shall deduct such difference from the next monthly payment
		due the Contractor, and the amount of the Monthly Escort Cost Reimbursement and
		Administrative Fee shall be decreased for the remaining months of March through
		June of such Extension Year to reflect a Daily Escort Cost based on such actual
		cost incurred.
	 

	 
		“(c) End of Year Certification. On or before
		August 5th following the end of each Extension Year under this
		Extension and Thirteenth Amendment Agreement, the Contractor shall submit to
		the Board a CPA-reviewed certification of (i) the actual
		amount of the aggregate Escort Costs, per Contract, incurred by the Contractor
		in such Extension Year, and (ii) the
		aggregate amount of all Escort Cost Reimbursement and Administrative Fees
		received by the Contractor from the Board for such Extension Year, together
		with such other documentation as may be reasonably requested by the Board in
		order to substantiate the Escort Costs. If the actual Escort Costs incurred
		plus applicable Administrative Fee for such time period shall exceed the amount
		of all Escort Cost Reimbursement and Administrative Fee paid to the Contractor
		for such time period, (i) for
		Extension Years 2005-2006 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		21
	 

	 
		 
	 

	 
		 
	 

	 
		through 2008-2009, the Board, by not later
		than the next monthly payment following the receipt of such certification,
		shall pay to the Contractor the amount of any such difference, and (ii) for
		Extension Year 2009-2010, the Board, by no later than thirty (30) days
		following the receipt of such certification, shall pay to the Contractor the
		amount of any such difference. The amount of the Escort Cost Reimbursement
		shall be increased commencing the following September to an amount equal to the
		Daily Escort Costs based on such actual incurred costs increased by the CPI
		percentage increase applicable to such Extension Year plus the applicable
		Administrative Fee. In the event that the actual Escort Costs incurred by the
		Contractor together with applicable Administrative Fee shall be less than the
		amount of the Monthly Escort Cost Reimbursement and Administrative Fee paid to
		the Contractor for such time period (i) for
		Extension Years 2005-2006 through 2008-2009, the Board shall deduct such
		difference (hereinafter expressed as ‘Overpayment’) from the next
		monthly payment due the Contractor, and the amount of the Monthly Escort Cost
		Reimbursement and Administrative Fee commencing the following September shall
		be reduced to reflect the Daily Escort Costs, based upon such actual incurred
		costs and then increased by the CPI percentage increase applicable to such
		Extension Year plus the Applicable Administrative Fee, and (ii) for Extension
		Year 2009-2010, the Contractor shall remit such Overpayment to the Board by not
		later that the next monthly payment following the date of such certification
		and the Escort Fidelity Bond as provided for in Subparagraph (4), infra, shall
		secure such payment.
	 

	 
		“(d) Health & Welfare/Wage Accrual
		Costs. On or before July 15th of each Extension
		Year, the Contractor shall submit to the Board invoices for the payment of
		Escort health and welfare contributions that are required to be paid in August
		and September of such calendar year. On or about the first day of August and
		September of such year, the Board shall pay to the Contractor in advance an
		amount equal to the amount of the Escort health and welfare payment to be made
		by the Contractor in each such month and an Administrative Fee equal to five
		percent (5%) of such health and welfare payment. On or before April
		5th of each Extension Year, the Contractor shall submit to the Board
		an invoice for the payment of Escort wage accruals that are to be required to
		be paid in June of such Extension Year. The Board shall, on or about the first
		day of June of such Extension Year, pay to the Contractor in advance an amount
		equal to the amount of such Escort wage accrual payments required to be paid by
		the Contractor in such month and an Administrative Fee equal to five percent
		(5%) of such wage accrual payments. At the request of the Board, the Contractor
		shall commence and vigorously prosecute claims in arbitration or in judicial
		proceedings to disallow health and welfare cost increase claims to the extent
		that the BOE shall find that any such cost increase claims shall be
		attributable to increases in fund administrative costs that are not ordinary,
		reasonable and compliant with BOE or other public policy. Upon request, the
		Contractor shall provide the Board with all documentation available to it
		regarding any such cost increases. The BOE shall reimburse the Contractor for
		fifty percent (50%) of its costs in any such arbitration and/or judicial
		proceeding.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		22
	 

	 
		 
	 

	 
		 
	 

	 
		“(e) Reimbursement for Summer Escorts. If the
		Contractor shall provide escorts in July and/or August during the period of
		this Extension and Thirteenth Amendment Agreement pursuant to contracts under
		Serial Nos. 0070, 7165, 8108, G8805, G8891 or G9325, the Contractor shall
		submit to the Board following the end of each such month of service a statement
		of actual Escort Costs incurred for such month (which costs shall not include
		overtime charges with respect to contracts under Serial No. 7165), which Escort
		Costs the Board shall promptly reimburse to the Contractor together with an
		Administrative Fee equal to 5% of such costs.
	 

	 
		“(4) Escort Fidelity Bond. Contractors
		making the election for Escort Cost Reimbursement herein shall file with OPT a
		fidelity bond in the amount of the projected Escort Cost Reimbursement for one
		month of escort services. Such bond shall remain in effect from September
		1st to August 31st of each Extension Year with the
		exception of the Extension Year 2009-2010 in which such bond shall remain in
		effect until December 31, 2010 and shall provide for payment of any Overpayment
		due and owing pursuant to Subparagraph
		(3)(c), supra. By not
		later than thirty (30) days before the expiration or other termination of each
		annual fidelity bond, the Contractor shall supply the BOE with a new fidelity
		bond for the succeeding Extension Year. Each fidelity bond provided hereunder
		shall provide to the BOE a reporting period not less than ninety (90) days
		following the expiration or other termination of each such bond. The amount of
		the fidelity bond shall be based upon the Contractor’s projection of Daily
		Escort Costs in accordance with Subparagraph (3), supra. Each such
		fidelity bond shall list the Board and the City of New York as named insureds
		and shall insure against any and all acts of commission or omission by the
		Contractor, any subcontractors, subsidiaries, parent or affiliate entities, or
		any officers, owners, directors, employees, servants, agents, independent
		contractors, or any other parties which shall result in the failure of the
		proper disbursement to the intended escort beneficiaries, whether any such
		party acts within or outside the scope of employment or contractual
		performance. A company licensed by the Superintendent of Insurance to do
		business in New York State must issue each such fidelity bond. If the
		Contractor does not elect for Escort Cost Reimbursement under this article,
		then the Contractor shall not be required to procure such a fidelity
		bond.”
	 

	 
		(E) AMENDMENTS
		TO INSURANCE PROVISIONS
	 

	 
		(1) ARTICLE (E) entitled, “Amendments to Insurance
		Provisions,” as expressed in the Supplemental Twelfth Amendment of
		Contract for Special Education Pupil Transportation Services is hereby
		incorporated into, and made part of, this Extension and Thirteenth Amendment
		Agreement as if set forth herein in its entirety, and the said ARTICLE
		(E) is hereby amended effective
		as of July 1, 2005 for purposes of Extension Year 2005-2006 through Extension
		Year 2009-2010 as follows:
	 

	 
		(a)
		The first paragraph and Note 7 of ARTICLE E, Paragraph (1)(E)(1)(a) are hereby amended to read as follows:
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		23
	 

	 
		 
	 

	 
		 
	 

	 
		“Contractor Payment of VALICA
		Program Premiums. In consideration
		of the Board’s supply of Primary Insurance, the contract compensation
		payable to the Contractor under this Contract shall be reduced for each twelve
		month period that the Primary Insurance shall be in effect (hereinafter
		expressed as ‘Primary Policy Year’)7, in an amount
		(hereinafter expressed as ‘Contract Reduction Amount’) equal to the
		following:
	 

	 
			
				
				   
				

			 	
				
				  “7
				

			 	
				
				  The first Primary Policy Year shall
				  be from March 31, 2003 until March 30, 2004. The second Primary Policy Year
				  shall be from March 31, 2004 until June 30, 2005. The third Primary Policy Year
				  shall be from July 1, 2005 until June 30, 2006. The fourth Primary Policy Year
				  shall be from July 1, 2006 until June 30, 2007. The fifth Primary Policy Year
				  shall be from July 1, 2007 until June 30, 2008. The sixth Primary Policy Year
				  shall be from July 1, 2008 until June 30, 2009. The seventh Primary Policy Year
				  shall be from July 1, 2009 until June 30, 2010. For the second Primary Policy
				  Year which is for a 15 month period, the Base Premium, and the $2,000 Credit
				  shall each be increased by twenty-five percent (25%).
				

			 

 

	 
		(b) ARTICLE (E),
		Paragraph
		(1)(E)(1)(a)(2) is hereby amended to read as follows:
	 

	 
		“(2) Two Thousand Dollars ($2,000.00)
		(hereinafter expressed as “$2,000.00 Credit”), multiplied by the
		total number of Contractor Vehicles (excluding
		spare vehicles) assigned to the Contractor under the VALICA Program in a given
		Primary Policy Year.”
	 

	 
		(c) The first full paragraph of Section (1)(E)(1)(e) of
		Article E is hereby amended to read as follows:
	 

	 
		“(e) Limitation on $2,000.00 Primary Insurance Cost
		Reduction. All else to the contrary
		notwithstanding, the BOE and the Contractor stipulate and agree that the
		Board’s obligation regarding the $2,000.00 Credit is limited to a
		reduction of Two Thousand Dollars ($2,000.00) per Contractor Vehicle
		(excluding spare vehicles) per Primary Policy Year (pro-rated in
		case a Primary Policy Year shall be more or less than twelve months) for the
		number of Contractor Vehicles (excluding
		spare vehicles) that shall have been assigned by the BOE to the Contractor for
		any Primary Policy year. The $2,000.00 Credit per Primary Policy Year also
		shall be pro-rated for any additional Contractor Vehicles that shall be
		assigned to the Contractor after the beginning of each such Primary Policy
		Year. The Contractor stipulates and agrees that it and its successors and
		assigns shall make no claims for any $2,000.00 Credits that would increase the
		said BOE obligation to more than Two Thousand Dollars ($2,000.00) per
		Contractor Vehicle (excluding
		spare vehicles) per Primary Policy Year. The Contractor stipulates and agrees
		that the BOE shall be entitled to recover at 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		24
	 

	 
		 
	 

	 
		 
	 

	 
		least the aggregate amount of the $2,000.00
		Credits attributable to the Contractor from all tax related and non-tax related
		savings achieved under the VAFPA Program through June 30, 2004, as expressed
		elsewhere in this Contract.”
	 

	 
		(d) ARTICLE (E), Paragraph (1)(E)(l)(e)(1) entitled, “Increases and Decreases in the Number
		of Vehicles,” shall have no further application for all Extension Years
		starting as of July 1, 2005. ARTICLE
		(E), Paragraph
		(1)(E)(1)(e)(2) is hereby amended to
		read as follows:
	 

	 
		“(2) Assignment of Contractor
		Vehicles. If the BOE shall approve any
		contract assignments affecting Contractor Vehicles (excluding
		spare vehicles), the contract assignee shall be afforded a $2,000.00 Credit per
		Contractor Vehicle (excluding
		spare vehicles). If the Contractor accepts any assignments of vehicles under
		this Contract, the Contractor stipulates and agrees that the Contract Reduction
		Amount charged to the Contractor for such assigned vehicles shall be based upon
		the Contract Reduction Amount per vehicle of the assignor. If the Contractor
		subsequently receives additional Vehicles under the assigned Contract, the
		Contract Reduction Amount applicable to the Additional Vehicles shall be based
		upon the Contract Reduction Amount of the Contractor and not that of the
		assignor. If an assignor’s premiums are lower than Two Thousand Dollars
		($2,000.00) per Contractor Vehicle, the assignee shall not be entitled to any
		credits for the difference as applied to spare and further additional vehicles
		as otherwise permitted under Paragraph
		(E)(1)(E)(1)(c), Note 8,
		supra.
	 

	 
		(d) ARTICLE
		(E),
		Paragraph (1)(E)(l)(c), Note 8 is
		hereby amended to read as follows:
	 

	 
			
				
				   
				

			 	
				
				  “8
				

			 	
				
				  In instances where the $2,000.00
				  Credits shall exceed the Contractor’s Base Premium, the Contractor shall
				  be entitled to a credit for any difference to be applied by the BOE against the
				  Contract Reduction Amount otherwise payable by the Contractor for spare
				  vehicles, provided, the preceding
				  shall act only to lower the Contract Reduction Amount and shall not obligate
				  the BOE to make any payments to the Contractor to any extent
				  whatsoever.”
				

			 

 

	 
		(F) EMPLOYEE
		PROTECTION PROVISIONS 
	 

	 
		Paragraph F of the Extension & Eleventh
		Amendment Agreement of Contract Serial Nos. 0070, 8107, 8108, G8805, G8891 and
		G9325 and ARTICLE 45 of contracts under Serial No. 7165 is hereby amended to
		read as follows:
	 

	 
		“1. Priority in Hiring and Master Seniority
		Lists.
	 

	 
		“There shall be established two
		industry-wide Master Seniority Lists. One list shall be composed of all
		operators (drivers), mechanics, and dispatchers and the other list shall be
		composed of escorts (matrons-attendants) who were employed as of June 30, 2005,
		under a contract between their employers and the Board for the transportation
		of school children in the City of New York, who 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		25
	 

	 
		 
	 

	 
		 
	 

	 
		are furloughed or become unemployed as a
		result of loss of contract or any part thereof by their employers, or as the
		result of a reduction in service directed by the Board during the term of the
		contract, in accordance with their date of entry into the industry. All
		operators (drivers), mechanics, dispatchers and escorts (matrons-attendants) on
		the Master Seniority Lists who participated in the Division 1181
		A.T.U.–New York Employees Pension Fund and Plan as of June 30, 2000, and
		who do not exercise their option to withdraw from the Fund and Plan shall
		continue to participate in such Pension Plan. By not later than September
		30th of each Extension Year, the Contractor shall supply the BOE
		with a Seniority List for all of the Contractor’s employees, which
		Seniority List the Contractor shall input into a Web-Based Application to be
		supplied by the BOE.
	 

	 
		“Any existing contractor or individual
		who conducted business as a sole proprietor, or as a member of a partnership or
		who held a controlling interest in a corporation that performed service
		pursuant to contract expiring in June, 2005 (“existing contractor”)
		shall give priority in employment on September, 2005 or thereafter on the basis
		of position on the Master Seniority List of any additional or replacement
		operators, mechanics and dispatchers beyond those performing service as of June
		30, 2005 consistent with the number of employees required by the specifications
		of the contract expiring June, 2005 for the number of vehicles providing
		service to the Board as of June 30, 2005 to individuals from the Master
		Seniority List until such list is exhausted.
	 

	 
		“Any new contractors, i.e., those who
		did not provide service pursuant to contract expiring June, 2005 (“new
		contractor”), shall give priority in employment in September, 2005 or
		thereafter on the basis of seniority to every operator (driver), mechanic and
		dispatcher performing service pursuant to such contract starting from the first
		employee from the Master Seniority List until such list is exhausted.
	 

	 
		“Should the Board determine to require
		the Contractor to provide escort service in addition to the operator, and in
		the event that all escorts (matrons-attendants) on the Master Seniority List,
		who were employed as of June 30, 2005, are not employed as escorts by
		contractors for the beginning of service in September of 2005, then said
		escorts shall be employed in order of their position on the Master Seniority
		List.
	 

	 
		“2. Compensation.
	 

	 
		“All operators (drivers), mechanics,
		dispatchers and escorts (matrons-attendants) on the industry-wide Master
		Seniority Lists shall be employed and paid on a full-time basis based upon the
		wage scale received from prior employer under pupil transportation contracts.
		
	 

	 
		“The Contractor shall compensate
		operators (drivers), mechanics and dispatchers and escorts (matrons-attendants)
		who appear on the Master Seniority Lists and who are employed pursuant to
		contracts to be awarded as follows for the term of the Contract:
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		26
	 

	 
		 
	 

	 
		 
	 

	 
		“(a) operators (drivers) and dispatchers at a daily rate of
		pay, including any COLA, for each day of service, not less than that paid
		pursuant to any applicable labor collective bargaining agreement.
	 

	 
		“(b) mechanics at a daily rate of pay, including any COLA,
		for each day of service, not less than that paid pursuant to any applicable
		labor collective bargaining agreement.
	 

	 
		“(c) escorts (matrons-attendants) at a daily rate of pay,
		including any COLA, for each day of service, not less than that paid pursuant
		to any applicable labor collective bargaining agreement.
	 

	 
		“Such operators (drivers) and escorts
		(matrons-attendants) shall be available for extended service, without
		additional compensation, which shall be defined as performance within the
		particular job category (i.e. drivers as drivers, and escorts
		(matrons-attendants) as escorts (matrons-attendants) ) within the eight (8)
		hour work day within the spread (8 within 10 hours) provided for in the
		collective bargaining agreement covering said employees, if any.
	 

	 
		“3. Welfare.
	 

	 
		“Contributions by the Contractor for
		providing welfare benefits to operators (drivers), mechanics, dispatchers and
		escorts (matrons-attendants), in the event the Contractor employs escorts, who
		appear on the Master Seniority List shall be no less than $587.65 through
		December 31, 2005 and $607.65 for the period of January 1, 2006 through June
		30, 2006 per employee per month on a twelve month basis during each year of the
		Contract.
	 

	 
		“4. Pensions.
	 

	 
		“The Contractor shall sign an agreement
		with Division 1181 A.T.U.–New York Employees Pension Fund and Plan to
		participate in such plan on behalf of all operators (drivers), mechanics,
		dispatchers and escorts (matrons-attendants), in the event the Contractor
		employs escorts, who appear on the Master Seniority Lists and who participated
		in the Fund and Plan as of June 30, 2005. This requirement shall not be
		interpreted to require any existing contractor or new contractor to enter into
		a collective bargaining agreement with the union, nor shall it prohibit any new
		contractor or existing contractor from entering into a collective bargaining
		agreement with the union. The Contractor shall file a copy of the executed
		agreement with the Trustees of the Fund and Plan to participate in said Fund
		and Plan and with the Director before the start of any school bus service under
		this Contract.
	 

	 
		“The Contractor shall contribute $63.40
		per week per operator (driver), mechanic and dispatcher on the Master Seniority
		List, and participating in the Plan and Fund as of June 30, 2005, for forty
		weeks each year for the term of the Contract, or such greater amount as may be
		required, based on contributions by contractors on behalf of the majority of
		employees participating in the Fund and Plan pursuant to a collective
		bargaining agreement with Local 1181–1061. The Contractor shall withhold
		$33.00 a week from each operator, mechanic and dispatcher participating in said
		Fund 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		27
	 

	 
		 
	 

	 
		 
	 

	 
		and Plan for forty weeks each year for the
		term of the contract, or such greater amount as may be required based on
		contributions of a majority of the operators (drivers), mechanics or
		dispatchers contributing to the Fund and Plan.
	 

	 
		“Such new contractors and existing
		contractors who provide escort service, shall contribute $59.40 per week per
		escort (matron-attendant) for forty weeks each year for the term of the
		contract, or such greater amount as may be required based on contributions by
		contractors on behalf of the majority of employees participating in the Fund
		and Plan pursuant to a collective bargaining agreement with Local
		1181–1061. The Contractor shall withhold $23.00 per week from each escort,
		(matron-attendant) participating in said Fund and Plan and Fund for forty weeks
		each year for the term of the Contract, or such greater amount as may be
		required based on contributions of the majority of the escorts contributing to
		the Fund and Plan. 
	 

	 
		“In connection with employees who are
		on the Master Seniority List and who do not participate in the Local
		1181–1061 Fund and Plan, they shall not be required to participate in the
		Plan but shall participate in the collective bargaining agreement, if any, of
		their employer. 
	 

	 
		“The Contractor shall pay all such
		amounts to the Fund and Plan within seven days after the end of each payroll
		period.
	 

	 
		“5. Enforcement.
	 

	 
		“In addition to any other remedies
		provided in the contract between the Board and the contractor, such as default
		and/or termination, if the contractor is found to be in violation of the
		foregoing Employee Protection Provisions regarding the payment of wages,
		welfare benefit contributions, pension contributions, or other aspects of
		compensation or benefits, then the Director of the Office of Pupil
		Transportation, within thirty (30) days of written notice, shall withhold the
		appropriate amounts from any payments due to the contractor and pay them
		directly to the applicable union for the benefit of the employees affected, to
		the Division 1181 A.T.U.–New York Employees Pension Fund or other
		applicable union pension fund for the benefit of the employees affected or to
		the appropriate Welfare Fund for the benefit of the employees affected. If the
		affected employees are not affiliated with any union, then the Board shall
		investigate on their behalf allegations of employee protection provision
		violations regarding the payment of wages, welfare benefit or health insurance
		contributions, pension or similar savings plan contributions, or other aspects
		of compensation or benefits. Upon a finding of any such violation(s), the OPT
		Director shall withhold the appropriate amounts from any payments due to the
		Contractor and pay them directly to the employees or to such health insurance
		companies or other institutions as appropriate.
	 

	 
		“In the event any new contractor or
		existing contractor willfully fails to comply, the Board of Education shall act
		to cancel such contractor’s contract, provided, however, that the Board
		shall not be required to act so as to cause a disruption of service.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		28
	 

	 
		 
	 

	 
		 
	 

	 
		“6. Contractors providing a total of five vehicles or less
		pursuant to all contracts with the Board for the transportation of pupils shall
		not be subject to the foregoing provisions with respect to operators (drivers),
		mechanics and dispatchers.
	 

	 
		“Escorts (matron-attendants) shall not
		be included in the exclusion in this paragraph six
		(6).
	 

	 
		“7. For the purposes of this section, corporate bidders who
		are subject to common control as determined by the Board based upon analysis of
		(a) ownership of the corporation’s assets,
		(b) coincidence of corporate officers and directors, and
		(c) such other factors as the Board determines to be
		relevant, are deemed to be one bidder.
	 

	 
		“8. The Board may in its sole and unfettered discretion
		change any date which determines employee protected status, employer status or
		any other status, which is contained in any employee protection provisions of
		the Contract. The Master Seniority Lists will be updated to June 30, 2005 as
		permitted in accordance with pre-existing collective bargaining agreements
		executed prior to the date of execution of this Contract. Furthermore, the
		rates quoted herein may not be reflective of current labor rates in effect. The
		Contractor should pay special attention to the fact that many employees on the
		Master Seniority Lists have been in the industry for many years and therefore
		may be entitled to substantial wages, pension and welfare benefits and wage
		accruals.
	 

	 
		“The date for inclusion on the Master
		Seniority List is hereby updated to the last school day in June, 2005 as
		permitted in accordance with pre-existing collective bargaining agreement
		executed prior to the date of this Extension Agreement and Amendment
		Agreement.”
	 

	 
		(G) VINTAGE AND AIR CONDITIONING
		REQUIREMENTS
	 

	 
		Any terms, conditions and specifications to
		the contrary notwithstanding, the Contract is hereby amended as follows:

	 

	 
		(1) Age
		and Condition of Vehicles. The
		vehicles affected by this provision include all originally contracted vehicles,
		(i.e., “contract vehicles”) and all additional and spare vehicles.
		Except for the age of vehicles, nothing contained in this Paragraph
		(1) and/or any of its subparagraphs
		shall be deemed or construed in any manner or to any extent whatsoever to act
		and/or operate in abrogation or derogation of any other individual or
		cumulative provisions of the Contract, as heretofore amended and
		extended.
	 

	 
		(a) The Contractor shall furnish service, maintenance and
		repairs of all vehicles used in the performance of this contract in compliance
		with (i) all manufacturer’s guidelines for maintenance,
		service and repairs, (ii) all Federal
		and State of New York statutes, regulations, rules, guidelines and policies
		applicable to service, maintenance and repair of school bus vehicles,
		(iii) all New York State Department of Transportation and New
		York State Department of Motor Vehicles policies, rules and regulations,
		(iv) Federal and State regulations applicable to maintenance
		and repair of school bus vehicles, and (v) all New York
		State Education De-
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		29
	 

	 
		 
	 

	 
		 
	 

	 
		partment, policies, rules and regulations
		applicable to service, maintenance and repair of school bus vehicles. The
		Contractor shall maintain and, upon demand, shall present to the Director
		contemporaneously kept, accurate, complete, orderly and written records of the
		school bus vehicle maintenance and repair activities performed in accordance
		with the foregoing.
	 

	 
		(b) The Director shall have the right to disapprove any
		vehicles under this Contract and to require the Contractor to furnish
		acceptable replacement vehicles in the event that the Director determines in
		his/her judgment any such vehicle(s) to be unfit for service.
	 

	 
		(c) During the life of this Extension Agreement Contractors
		who provide mini wagons and/or ramp Wagons (collectively “Small School
		Buses”) and Contractors who provide a combination of (x) Small School
		Buses; and (y) standard school buses, dual-door buses and or hydraulic lift
		buses (collectively, “Large School Buses”) must comply with the
		following:
	 

	 
		(i) Except as provided in subparagraph (e) below, by June
		30, 2005, no more than 10% of the total number of vehicles operated by a
		Contractor pursuant to this Contract may be manufactured prior to 1987;
	 

	 
		(ii) Except as provided in subparagraph (e) below, by June
		30, 2006, no more than 25% of the total number of vehicles operated by a
		Contractor pursuant to this Contract may be manufactured prior to 1990 and no
		such vehicles may be manufactured prior to 1987;
	 

	 
		(iii) By June 30, 2007, no more than 20% of the total number
		of vehicles operated by a Contractor pursuant to this Contract may be
		manufactured prior to 1991 and no such vehicles may be manufactured prior to
		1988;
	 

	 
		(iv) By June 30, 2008, no more than 10% of the total number
		of vehicles operated by a Contractor pursuant to this Contract may be
		manufactured prior to 1992 and no such vehicles may be manufactured prior to
		1989;
	 

	 
		(v) By June 30, 2009, no vehicles operated by a Contractor
		pursuant to this contract may be manufactured before 1990.
	 

	 
		(vi) In the event of a further extension of this contract
		beyond June 30, 2010, by June 30, 2010 no more than 5% of the total number of
		vehicles operated by a Contractor pursuant to this contract may be manufactured
		prior to 1993 and no such vehicles may be manufactured prior to 1991;
	 

	 
		(d) During the term of this Extension Agreement, Contractors
		who operate a combination of Large School Buses and Small School Buses, and
		Contractors who operate only Large School Buses must comply with the following
		with regard to the age of Large School Buses as a separate class of
		vehicles:
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		30
	 

	 
		 
	 

	 
		 
	 

	 
		(i) Except as provided in subparagraph (e), infra, by June
		30, 2005, no more than 10% of the number of Large School Buses operated by a
		Contractor pursuant to this Contract may be manufactured prior to 1987;
	 

	 
		(ii) Except as provided in subparagraph (e), infra, by June
		30, 2006, no more than 30% of the number of Large School Buses operated by a
		Contractor pursuant to this Contract may be manufactured prior to 1990 and no
		such vehicles may be manufactured prior to 1987;
	 

	 
		(iii) By June 30, 2007, no more than 25% of the number of
		Large School Buses operated by a Contractor pursuant to this Contract may be
		manufactured prior to 1991 and no such vehicles may be manufactured prior to
		1988;
	 

	 
		(iv) By June 30, 2008, no more than 20% of
		the number of Large School Buses operated by a Contractor pursuant to this
		Contract may be manufactured prior to 1992 and no such vehicles may be
		manufactured prior to 1989;
	 

	 
		(v) By June 30, 2009, no more than 15% of
		the number of Large School Buses operated by a Contractor pursuant to this
		Contract may be manufactured prior to 1992 and no such vehicles may be
		manufactured prior to 1990.
	 

	 
		(vi) In the event of a further extension of
		this Contract beyond June 30, 2010, by June 30, 2010, no more than 10% of the
		number of Large School Buses operated by a Contractor pursuant to this Contract
		may be manufactured prior to 1993 and no such vehicles may be manufactured
		prior to 1991;
	 

	 
		(e) Notwithstanding the limitations set forth in
		subparagraph (c)(i) and (ii) and
		subparagraph (d)(i) and (ii),
		supra, through June 29, 2006, the Contractor may continue to
		use the vehicles that the Contractor owns and/or leases and are in service as
		of June 30, 2005 (“Existing Vehicles”), provided, the Director
		shall have the right to disapprove any such vehicles and to require the
		Contractor to furnish an acceptable replacement vehicle in the event that the
		Director shall determine in his/her judgment any such vehicle(s) to be unfit
		for service. Vehicles transferred among contractors that are subject to common
		control shall be considered Existing Vehicles under the preceding sentence.
		
	 

	 
		(f) Any vehicles that shall be first placed into service
		during the term of this Extension Agreement shall be not more than five (5)
		years old at the time such vehicle is placed into service. The continued use of
		any given contractor’s vehicles that are in service in accordance with the
		terms hereof shall be authorized for use pursuant to the terms of this
		provision by a contract assignee, upon assignment of a contract with approval
		of the Board.
	 

	 
		(g) Vehicles ordered prior to June 30 and delivered prior
		to the end of the following September of an Extension Year shall qualify for
		purposes of determining the percentages set forth in subparagraphs (c) and (d), supra.
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		31
	 

	 
		 
	 

	 
		(h) In the event of an assignment of a Contract or an
		assignment of a separate item of a Contract, which shall have been approved by
		the BOE, vehicles transferred to the assignee by the assignor, which were in
		compliance with the assignor’s vintage requirements, may be placed in
		service by the assignee, notwithstanding that such vehicles might otherwise
		result in noncompliance with the percentage limitations of subparagraph (c) or (d), supra. The
		preceding sentence to the contrary notwithstanding, the assignee Contractor
		shall have twelve (12) months from the date of BOE approval of an assignment to
		bring all non-complying vehicles into full compliance with the percentage
		limitations of subparagraph (c) or
		(d), supra.
	 

	 
		(i) For purposes of subparagraphs (c) and (d), supra, a
		manufacture date/placed in service date shall replace the manufacture date to
		allow a manufacture date one (1) year earlier than current allowance. For
		explanatory purposes, current BOE rules require that a new vehicle is one with
		a model year of “x” and a manufacture year of “x – 1.”
		During the term of the Extension and Thirteenth Amendment Agreement, new
		vehicle shall be a model year of “x -1” and a manufacture date of
		“x – 2.”
	 

	 
		(2) List of Vehicles. The Contractor
		must provide a list of all vehicles, including spare and maintenance vehicles,
		to be operated during each Extension year. Each list must show for every
		vehicle the year, make, type, seating capacity, registration number, bus
		number, license plate number, owner, lessee (if applicable), and the expiration
		date of the New York State Department of Transportation approval sticker. The
		information required under this paragraph must be provided to a Web-Based
		Application, as supplied and updated by the BOE, and the Contractor must supply
		a copy of the title or certificate of registration for each listed vehicle.
		Whenever any changes occur in the list of vehicles as stated on the Web-Based
		Application, the Contractor must update the list within two (2) BOE Business
		Days. In addition, the Contractor must provide at the same time written
		assurance that all vehicles are equipped with two-way radios.
	 

	 
		(3) Air Conditioning/Climate Control
		Systems. (a) Each vehicle that is required to have an Air
		Conditioning/Climate Control System must be equipped with an air conditioning
		system with sufficient power-train, electrical, and engine cooling support
		systems to maintain comfortable conditions throughout the entire interior of
		the vehicle during any warm weather periods at ambient temperatures not higher
		nor lower than necessary to meet the medical and comfort needs of each
		passenger.
	 

	 
		(i) By June 30, 2006, fifty percent (50%) of all Small
		School Buses operated by the Contractor pursuant to this Contract will be
		required to be equipped with air conditioning/climate control systems.
	 

	 
		(ii) By June 30, 2007, sixty percent (60%) of all Small
		School Buses operated by the Contractor pursuant to this Contract will be
		required to be equipped with air conditioning/climate control systems.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		32
	 

	 
		 
	 

	 
		 (iii) By June 30, 2008, seventy percent (70%) of all Small
		School Buses operated by the Contractor pursuant to this Contract will be
		required to be equipped with air conditioning/climate control systems.
	 

	 
		(iv) By June 30, 2009, eighty percent (80%) of all Small
		School Buses operated by the Contractor pursuant to this Contract will be
		required to be equipped with air conditioning/climate control systems.
	 

	 
		(v) In the event this Contract shall be further extended
		beyond June 30, 2010, by June 30, 2010, one hundred percent (100%) of all Small
		School Buses operated by the Contractor pursuant to this Contract will be
		required to be equipped with air conditioning/climate control systems.
	 

	 
		(b) Each Small School Bus which the Contractor shall
		acquire during the term of this Extension Agreement in order to comply with the
		age requirements set forth in Section (1) hereof, shall be equipped with air
		conditioning/climate control systems. With the exception of the vehicles
		referenced in the preceding sentence, the Board shall pay a one-time equipment
		fee equal to the lesser of $3,000 or 50% of the Contractors cost to air
		condition the number of Small School Buses (i) which the
		Contractor is required to maintain for any Extension Year in accordance with
		the percentages set forth in subparagraph (a) of this Section (3); and/or,
		(ii) which the Contractor is required to air condition in
		order to comply with applicable law.17 By way of example, if in June
		2006 (at which time 50% of all Small School Buses which make up a
		Contractor’s fleet are required to be air conditioned and no more than 25%
		of such fleet can be manufactured prior to 1990), a Contractor’s fleet
		consisted of twenty five 1989 and seventy five 1995 non-air-conditioned Small
		School Buses, the Contractor would be required to (i) replace all
		of the twenty five 1989 vehicles with newer Small Buses with air conditioning
		at its own cost to satisfy the vintage requirements; and, (ii) replace or retrofit twenty five of the 1995 vehicles
		with air conditioning (to meet the 50% AC requirement) for which the Contractor
		would be entitled to an equipment fee equal to the lesser of $3,000 or one-half
		of the cost of such air conditioning installation per bus.
	 

	 
		(c) Subject to prior approval by the Board, Contractors
		shall receive a one-time equipment fee for each Large School Bus equipped with
		air-conditioning/climate control systems, which the Contractor shall place into
		service during the term of this Extension Agreement. Such equipment fee shall
		equal the lesser of $4,000 or one-half of the cost of the Contractor’s
		cost for such air–conditioning system. The Board’s prior approval
		shall not be withheld in instances where the Contractor is required by law to
		provide air conditioned Large School Buses in order to transport New York City
		school children.
	 

	 
		(d) The Board shall pay the cost of the air-conditioning
		equipment fee directly to the Contractor.
	 

	 
		______________
	 

	 
			
				
				  17 The Contractor may either retrofit existing vehicles
				  with air-conditioning units or purchase new vehicles with air-conditioning
				  units installed by the vehicle manufacturer or dealer.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		33
	 

	 
		 
	 

	 
		(e) Each air-conditioned vehicle, for which the Board shall
		pay an equipment fee in accordance with this Section (3), shall be made
		available for service to the Board on a priority basis.
	 

	 
		(f) If the Contractor shall accelerate the timing for the
		purchase of air-conditioned vehicles beyond the timing needed to comply with
		the vintage requirements under Paragraph
		(G)(1), supra, the
		Contractor shall be entitled to the air conditioning equipment fee for such air
		conditioned vehicles for which the purchase or retrofit thereof shall have been
		accelerated, provided,
		that the Contractor shall have obtained advance approval for such acceleration
		from the Director. In cases where the Contractor already shall have met the
		minimum requirement for the number and/or percentage of vehicles with
		air-conditioning at the outset of this Extension and Thirteenth Amendment
		Agreement, however, the Contractor shall not be entitled to any reimbursement
		of any past costs and expenses for the installation, upgrade, retro-fitting,
		repair and/or maintenance of air-conditioning equipment.
	 

	 
		(H) MISCELLANEOUS
		VEHICLE SPECIFICATIONS 
	 

	 
		AND OPERATIONAL AMENDMENTS
	 

	 
		(1) Computer Systems. The Contractor
		shall be required to maintain a computer system sufficient to run applications
		developed by the BOE Office of Pupil Transportation. Currently, the minimum
		computer system required is as follows: Pentium IV Computer, 512 megabytes of
		RAM, 50 gigabyte hard disk, Windows XP/2000, and Broad-Band Connection. The
		Contractor shall also maintain the following: (i) online route
		establishment, deletion and modification capability; (ii) high speed
		internet connectivity for electronic routing; and, (iii) a website
		which shall include updated (on a basis as specified by the Director) pick up
		and drop off times for the routes serviced by the Contractor. During the life
		of this Extension Agreement, the Contractor will be required to update the
		computer system as required by the Director.
	 

	 
		(2) New Laws, Rules, Regulations, Bylaws or School Bus
		Safety Features. If, staring July 1, 2005, any State or local laws,
		rules or regulations are enacted, updated, revised, amended or otherwise
		changed in any manner that shall require the Contractor to undertake any new or
		revised procedures affecting school bus personnel or operations (i.e.,
		school bus personnel drug or alcohol testing, driver licensing or training
		procedures, etc.) or the introduction onto vehicles of new safety
		features or any other equipment (e.g., increased seat-back padding,
		back-up beepers, stop arms, safety sensors, seat belts, etc.), the
		Contractor must comply promptly, provided, the BOE shall pay
		one-half (1⁄2) of the cost of compliance with any such new or revised
		driver and/or operational procedures and/or for the purchase and installation
		of new safety features and/or other equipment in compliance with any such legal
		and/or regulatory changes. If, starting July 1, 2005, any Federal laws, rules
		and/or regulations are enacted, updated, revised, amended or otherwise changed
		in any manner that shall require the Contractor to undertake any new or revised
		procedures affecting school bus personnel or operations (i.e., school
		bus personnel drug or alcohol testing, driver licensing or training procedures,
		etc.) or the introduction onto vehicles of new safety features or any
		other equipment (e.g., increased seat-back padding, back-up beepers,
		stop arms, safety sensors, 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		34
	 

	 
		 
	 

	 
		seat belts, etc.), the
		Contractor must comply promptly, and the BOE shall not be liable to pay any
		additional compensation to the Contractor for such compliance.
	 

	 
		(3) Customer Liaison. In each garage
		maintained to provide services under this Contract the Contractor shall employ
		personnel dedicated to customer telephone response at the rate of one customer
		liaison for every 100 buses (to a maximum of three customer liaisons per
		garage) except during the first three weeks of school opening when the ratio
		shall be one liaison per fifty buses.
	 

	 
		(4) Replacement Buses. Replacement
		buses must be dispatched immediately following a determination that more than
		thirty minutes will be required for a repair truck to reach a breakdown
		site.
	 

	 
		(5) Safety Kit. Each bus must
		contain a safety kit including fire blanket, seat belt, cutter, flashlight and
		liquid clean up kit.
	 

	 
		(6) Special Training. Special
		education drivers and escorts will be made available for not less than two (2)
		days each BOE School Year for specialized training, provided,
		that the cost of overtime or additional labor costs incurred as a result
		thereof, if any, will be paid by the BOE to the Contractor, anything in
		Paragraph (D)(1), supra, to the
		contrary notwithstanding.
	 

	 
		(7) Geographic Positioning Systems. All buses will
		be equipped with a geographic positioning system and back up cellular emergency
		communications, the cost of which, including monthly service and maintenance
		fees shall be purchased and paid for by the BOE.
	 

	 
		(8) Diesel Emission Filters. Commencing
		June 30, 2006 and during the remaining term of this Extension and Thirteenth
		Amendment Agreement, all Large School Buses (and any other buses which are
		required by law to be equipped with diesel emission filters) shall be equipped
		with diesel emission filters that shall satisfy all regulatory and legal
		requirements, the cost of which filters and replacement filters shall be paid
		by the BOE. The preceding sentence to the contrary notwithstanding, the
		Contractor shall be responsible to replace at it sole cost and expense any and
		all emissions filters that shall need to be replaced during the term of this
		Extension and Thirteenth Amendment Agreement due to any act(s) of commission
		and/or omission by the Contractor that shall cause and/or permit the
		manufacturer’s warranty to be voided or otherwise terminated.
	 

	 
		(9) Ramp Wagons. Ramp Wagons
		which under current Department of Transportation regulations can only
		accommodate three (3) wheelchair passengers, shall continue to qualify as Ramp
		Wagons under the specifications of this Contract, provided the Board shall have
		the right to designate certain routes for four wheelchair passengers Ramp
		Wagons on an as needed basis and to offer such designated routes in according
		to the Pick Order, first to those Contractors with Ramp Wagons having capacity
		for four wheelchairs and then to those Contractors with Ramp Wagons having
		capacity for three wheelchairs. Contractors with four wheelchair capacity
		vehicles shall not be required to accept any such designated routes.
	 

	 
		(10) Sales,
		Excise and Use Taxes. The Board and
		the Contractor hereby stipulate and agree that the following amendments to the
		Contract shall take effect only if an
		when (i.e., no retroactive 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		35
	 

	 
		 
	 

	 
		application) the BOE shall obtain approval
		for the said provisions about sales, excise, compensating use and/or other
		taxes from the New York State Department of Taxation & Finance, the New
		York State Office of Attorney General, and/or a judicial and/or administrative
		tribunal with applicable jurisdiction. If and to the extent that the New York
		State Department of Taxation & Finance, the New York State Office of
		Attorney General, and/or a judicial and/or administrative tribunal with
		applicable jurisdiction shall require the following provisions to be revised to
		conform to applicable laws, rules and regulations, the Board and the Contractor
		hereby stipulate and agree that, upon the issuance of a ruling making such a
		revision requirement, the following provisions in this Paragraph (H)(10) shall be deemed so revised automatically and without
		the need for any further action by the Board and/or the Contractor.
		ARTICLE (H)(4) of the
		Extension and Eleventh Amendment of Contract entitled, “Sales, Excise and
		Use Taxes,” is hereby amended to read as follows:
	 

	 
			
				
				   
				

			 	
				
				  “4.1.
				

			 	
				
				  ELIMINATION OF FEDERAL, STATE AND
				  LOCAL
				  TAXES.
				

			 

 

	 
		“The BOE represents that it is a
		municipal corporation and school district as defined in the Education Law and
		the General Construction Law of the State of New York, and as such is exempt
		from the payment of Federal, State or local sales, excise, compensating use,
		gross receipts and other applicable taxes, as provided under the U.S. Internal
		Revenue Code and the Tax Law of the State of New York. The Contractor shall use
		commercially reasonable efforts to comply with the provisions set forth herein
		for the elimination of payments of such taxes for otherwise taxable goods,
		supplies, equipment, services, etc., that the
		Contractor shall purchase in the provision of the services under this Contract
		for purposes of resale to the BOE, and the Contractor shall pass along the
		benefits of related savings to the BOE.
	 

	 
			
				
				   
				

			 	
				
				  “4.2. 
				

			 	
				
				  CONTRACTOR AS A PURCHASING
				  AGENT.
				

			 

 

	 
		“4.2.1. The BOE hereby appoints,
		designates and approves the Contractor to be and to act as the Board’s
		official purchasing agent for purposes of this Contract, to purchase or
		otherwise lawfully acquire third party services, third party goods,
		etc., that the Contractor shall reasonably and ordinarily
		need for purposes of resale to the BOE and otherwise to furnish the services
		under this Contract. The Contractor hereby accepts the BOE appointment to be
		and to act as the Board’s official purchasing agent as set forth in the
		preceding sentence. This agency appointment is limited strictly to the purposes
		of the Contractor’s provision of third party services, third party goods,
		etc., under this Contract and for no other purposes. In
		furtherance thereof, the BOE shall furnish to the Contractor an agency
		appointment letter on official NYCDOE letterhead stationery (hereinafter
		expressed as “Purchasing Agency Letter”) that the Contractor shall
		utilize in all of its purchases or other forms of lawful acquisition from the
		Contractor’s suppliers, sellers, subcontractors or other sources.
	 

	 
		“4.2.2. The Contractor shall
		present a copy of the Purchasing Agency Letter and such other necessary
		documentation, as provided by the BOE, to each supplier, seller, subcontractor
		or other source from or with whom the Contractor purchases or otherwise 

	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		36
	 

	 
		 
	 

	 
		lawfully acquires consumable goods,
		commodities, materials, supplies, hardware, software, services, etc.,
		for purposes of resale to the BOE in performing this Contract. For each such
		transaction, the Contractor shall use commercially reasonable efforts to obtain
		full exemptions from all applicable Federal, State and local sales, excise,
		compensating use, gross receipts and other applicable taxes. This agency
		appointment and tax exemption does not apply to the purchase or
		other acquisition of durable goods and equipment such as, but not limited to,
		school buses, maintenance vehicles, automobiles, durable equipment, durable
		tools, capital fixtures, etc., that are not for purposes of resale to
		the BOE or shall otherwise not be consumed in the performance of school bus
		services and other services under this Contract.
	 

	 
		“4.2.3. To the extent legally
		possible, the Contractor’s invoices to the BOE for services purchased from
		the Contractor shall not include any sales, excise, compensating use, gross
		receipts and/or other applicable taxes. The Contractor shall use commercially
		reasonable efforts to cooperate with the BOE and with any third party to ensure
		that no sales, excise, compensating use, gross receipts and/or other applicable
		taxes shall be payable by the Contractor or by the BOE with respect to third
		party goods and third party services that are purchased from third parties by
		the Contractor on behalf of the BOE.
	 

	 
		“4.2.4. The Contractor’s
		agreements with, and purchase orders to, any third party manufacturers,
		sellers, suppliers and/or service providers as well as all subcontractors in
		connection with the services performed under this Contract shall specify that
		the Contractor is a purchasing agent for the BOE. All checks that the
		Contractor issues for payment to third party manufacturers, sellers, suppliers
		and/or service providers as well as all subcontractors in connection with the
		services delivered and performed hereunder shall specify that the Contractor is
		a purchasing agent for the BOE.
	 

	 
		“4.2.5. In the event that any
		subcontractors or subcontractor’s employees shall make any purchases or
		other forms of lawful acquisition on the Contractor’s behalf pursuant to
		this Contract for purposes of resale to the BOE, the Contractor shall require
		such subcontractors or subcontractor employees, as the case may be, to use all
		commercially reasonable efforts to seek and obtain the appropriate sales,
		excise, use and other tax exemptions on the Board’s behalf. In furtherance
		thereof, the BOE shall furnish to the Contractor, upon written request, a
		letter on official NYCDOE letterhead stationery of the purchasing agency
		appointment of each such subcontractor or subcontractor’s employee that
		the said person or entity shall utilize in all of his/her/its purchases or
		other forms of lawful acquisition from any affected suppliers, sellers, and
		other sources.
	 

	 
		“4.2.6. If the Contractor needs
		any assistance, advice or modification(s) regarding its agency appointment
		letter(s), the Contractor shall provide written notice of such request to
		Michael P. Coneys, Esq., Attorney (or his successor), New York City 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		37
	 

	 
		 
	 

	 
		Department of Education, Office of Legal
		Services, The Tweed Courthouse, 52 Chambers Street, Room 308, New York, NY
		10007-1222; telephone: (212) 374-3442; fax (212) 374-5596; e-mail address at
		mconeys@nycboe.net.”
	 

	 
		(I) GENERAL MISCELLANEOUS AMENDMENTS
	 

	 
		All else to the contrary notwithstanding,
		the Contract is hereby amended as follows:
	 

	 
		(1) Changes Affecting Contractor. Paragraph (2)
		of Section J of the Eleventh Amendment to Contract is amended to read in its
		entirety as follows:
	 

	 
		“(2) Changes Affecting the Contractor. The Contractor
		shall provide written notice to the BOE on forms prescribed by the Director of
		each change affecting the following: partners, sole proprietors, management
		control, Chief Executive Officer, Chief Financial Officer, Chief Operating
		Officer, or the organization of ownership of the contractor,
		i.e., the corporation, partnership
		or sole proprietorship. Changes in the contractor include, but are not limited
		to, the following: corporate or partner voting power; sale, transfer or other
		alienation of corporate, partnership or sole proprietorship assets; sale or
		transfer of corporate stock or partnership interest over five percent (5%); or,
		any other action that may affect BOE interests. Effective as of the 2005-06
		Extension Year, without the prior approval of the Director, which approval
		shall not be unreasonably withheld, (i) no Contractor shall change its chief
		executive officer (with the exception of a person who has held an executive
		position with a Board school bus transportation Contractor for at least five
		years); and (ii) no Contractor shall be subject to a change of control
		(with the exception of a transfer of ownership interests among family
		members).”
	 

	 
		(2) Unlawful or Unenforceable Provisions
		Void. Whereupon this Extension and Amendment Agreement shall
		be found to contain any unlawful or unenforceable provision(s), such
		provision(s) shall be deemed of no effect and will, upon application of either
		party, be stricken from this document without thereafter affecting the binding
		force of the remainder of this Extension and Amendment Agreement.
	 

	 
		(3) Approval and Execution. This Extension
		and Amendment Agreement will not become binding or effective upon the Board of
		Education until the following series of events will have transpired: (a)
		approval as to legal sufficiency by the BOE Office of Legal Services; (b)
		approval of a Request for Authorization (herein expressed as
		“RA”) by the Chancellor; (c) execution on behalf of
		the Board of Education by the Chancellor or his/her designee; (d) approval by
		the New York State Commissioner of Education; (e) initial registration with
		Comptroller and re-registration with the Comptroller each year thereafter; and,
		(f) initial approval and subsequent annual re-approval by the New York State
		Financial Control Board pursuant to the New York State Emergency Act for the
		City of New York, as the rules and regulations of said Board so require.

	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		38
	 

	 
		 
	 

	 
		(4) Implementation of the State Education
		Law. This Extension and Amendment Agreement is intended to
		implement the provisions of New York State Education Law §305(14) and the
		attendant regulations of the New York State Commissioner of Education.
		Whereupon there shall exist any inconsistency between the BOE and the SED
		concerning this statutory provision, the attendant regulations of the
		Commissioner of Education and/or any formula(e) for reimbursement of funds,
		this Extension and Amendment Agreement shall be deemed amended automatically to
		conform to the interpretation of the SED but only for the protection of BOE
		interests and only at the Board of Education’s option.
	 

	 
		(5) Comptroller. The
		Comptroller shall endorse hereon during the term of this Contract his/her
		certificates that there are appropriations or funds applicable thereto
		sufficient to pay the estimated expense to execute and operate this Contract
		during the respective fiscal periods.
	 

	 
		(6) Construction. As used
		herein, the singular shall include the plural and vice versa. As
		used herein, all masculine, feminine and neuter pronouns and other gender
		descriptions shall be deemed synonymous and interchangeable.
	 

	 
		(7) Vacillation in the Number of Contract and/or Additional
		Vehicles during Extension Periods. Paragraph C of
		Article XIII entitled, “INCREASE OR DECREASE IN THE NUMBER OF
		VEHICLES,” is henceforth amended as follows:
	 

	 
		 “C. Increases and/or Decreases in the Number of Vehicles
		during Extension Periods. (i) The Board
		and the Contractor do hereby stipulate and agree that the number of vehicles
		required to serve pupil transportation needs may change often during each
		school year due to changes in pupil population, default or voluntary surrender
		of a Contract or changes in policy or directives adopted by the BOE, the City
		of New York, the State Education Department and/or Financial Control Board,
		over the term of an Extension Agreement. This provision does not apply to the
		summer months when vehicles may be decreased as much as necessary. For Summer
		School Transportation services vehicles will be offered by item beginning with
		the contractor that quoted the lowest daily rate per vehicle under Contract
		Serial Nos. 4515, 4516, 4894, 4952 and 7164. If additional vehicles are then
		needed vehicles will be offered by item beginning with the contractor who
		quoted the lowest daily rate per vehicle under Contract Serial Nos. 0070, 8108,
		8805, 8891, 9325 and 7165.
	 

	 
		(ii) If the Director eliminates any
		vehicle(s) from the number of vehicles awarded to the Contractor (whether
		originally awarded at the inception of the Contract or awarded as additional
		vehicles thereafter) and later offers again a vehicle(s) of the same type(s)
		and geographical service area(s) due to any resumed need, the Contractor from
		whom such vehicles have been previously deleted shall be entitled to
		restoration up to and including the number of vehicles of the same type(s) and
		geographical service area(s) previously deleted. In the event that additional
		
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		39
	 

	 
		 
	 

	 
		vehicles (i.e. vehicles added after the
		inception of the Contract) have been deleted from more than one Contractor in a
		specific item, the Contractor lowest in the Pick Order (as hereinafter defined)
		shall first be offered restoration of such deleted vehicles. 
	 

	 
		(iii) With the exception of the award of
		vehicles in accordance with subparagraph (ii) above, the Director shall offer
		any ‘additional’ vehicle(s) to contractors in the relevant
		contractual item as determined by the order of contractors established as of
		August 24, 2004 (the “Pick Order”), pursuant to the procedures
		specified above in Paragraph
		B. 
	 

	 
		(iv) Additional vehicles accepted by
		Contractors pursuant to a change order issued by the Board will continue in
		service for the duration of the Contract (subject to the right of the Board to
		delete vehicles in accordance with this Section C, and Contractors shall have
		no right to terminate services for such additional vehicles after the same have
		been accepted by the Contractor.
	 

	 
		(v) The Board shall promptly advise all
		contractors of all route deletions and additions made by the Board pursuant to
		the terms hereof. 
	 

	 
		(vi) “Anything in the previous ARTICLE
		XIII and/or elsewhere in the Contract to the contrary notwithstanding, the
		Board of Education shall not reduce the number of ‘additional’
		vehicles held by the Contractor as of June 30th each extension year
		during the period of this Extension and Thirteenth Amendment Agreement,
		except in instances of decreases of student population
		affecting the Contractor’s geographical service area(s) and/or type(s) of
		vehicle(s). With respect to this ARTICLE XIII and all other applicable aspects
		of the Contract, the BOE shall have the sole and absolute discretion to fix and
		determine which schools students shall attend throughout the New York City
		School District, to determine what types of vehicles shall be appropriate to
		transport individual pupils, and to make findings and decisions with respect to
		increases and decreases of student populations in the various geographical
		areas of the New York City School District.”
	 

	 
		(8) Performance
		Bond Requirements. Paragraph
		(4)(b)(v) of Section (E) of the Supplemental Ninth Amendment Agreement is
		hereby amended to the extent of adding the following:
	 

	 
		“Contractors with senior management
		with at least ten years of continual contract performance with the Board will
		have the option to either (a) post an annual performance bond in the amount
		required hereunder or (b) pay to the Board an annual security fee equal to one
		half of one percent of such bond amount.” 
	 

	 
		(9) Assignment. Contractors
		may assign their Contracts subject to the prior approval of the Board.
		Contractors shall not be permitted to assign a portion of a specific item of
		service 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		40
	 

	 
		 
	 

	 
		without the prior approval of the Board
		which approval shall only be granted when it is determined to be in the best
		interests of the Board in order to maintain service. In the event a Contract
		Item is split, the Contractor to whom part of an item is assigned shall be
		placed immediately behind the assignor in the Pick Order.
	 

	 
		(10) Billing Liaison. The Board
		shall designate a Board employee who shall serve as billing liaison to
		contractors, who shall promptly address inquires regarding contract billing and
		who shall have authority to resolve billing errors.
	 

	 
		(11) Contract Serial No. 7165. For
		Contractors with contracts under Serial No. 7165 who shall have elected Escort
		Cost Reimbursement under Article
		D, supra,
		compensation for Extended Service, Additional Service (also know as
		“Overtime”) and Field Trips shall be in an amount equal ten percent
		(10%) of the Contractor’s applicable Total Daily Rate per Vehicle
		(i.e., the total rate for the vehicle, driver and escort) in
		effect for the 2004-05 Extension Year, as increased by (i) the Fixed
		Percentage Increase of three-and-seventy-four-hundredths percent (3.74%)
		(without any requirement for cost justification), and (ii) the annual
		CPI increment increase as expressed in Article B(1)(a),
		supra. Thereafter, the compensation for Extended Service,
		Additional Service and Field Trips shall be increased in each subsequent year
		of this Extension and Thirteenth Amendment Agreement by the same rate of
		increase as provided for with respect to the daily rate per vehicle under
		Contract Serial No. 7165, ARTICLE 28(A), as
		amended.18
	 

	 
		(12) Route Changes and Use of Toll
		Roads. A Contractor may request the Board’s approval for
		an alternative vehicle route, which approval shall not be unreasonably
		withheld. Approval shall not be withheld for any such route change which
		(i) results in a reduction of travel time, or
		(ii) results in a non toll road route that is within fifteen
		(15) minutes in duration of the toll road 
	 

	 
		______________
	 

	 
			
				
				  18 For example only, for the Ninth Extension Year (July 1,
				  2005 to June 30, 2006), the Additional Service Rate for a Regular Service Rate
				  run shall be a flat rate of ten percent (10%) of the total daily Regular
				  Service Rate (including costs for vehicle, driver and escort) in effect for the
				  2004-05 Extension Year increased by (i) the Fixed
				  Percentage Increase of three-and-seventy-four-hundredths percent (3.74%)
				  (without any requirement for cost justification), and (ii) the annual
				  CPI increment increase as expressed in Article B(1)(a),
				  supra, on an hourly basis for Additional Service with
				  pro-rated payments for such service of less than one (1) hour in fifteen (15)
				  minute increments (i.e., rounded up to the nearest quarter hour). Thereafter,
				  for the Tenth through Thirteenth Extension Years hereunder, the amount shall be
				  increased by the CPI increment increase as expressed in Article B(1)(b) through
				  (e), supra.
				

			 

 

	 
		For a second example only, for the Ninth
		Extension Year (July 1, 2005 to June 30, 2006), the Additional Service Rate for
		an Extended Service Rate run shall be a flat rate of ten percent (10%) of the
		total daily Extended Service Rate (including costs for vehicle, driver and
		escort) in effect for the 2004-05 Extension Year increased by (i) the Fixed
		Percentage Increase of three-and-seventy-four-hundredths percent (3.74%)
		(without any requirement for cost justification), and (ii) the annual
		CPI increment increase as expressed in Article B(1)(a),
		supra, on an hourly basis for Additional Service with
		pro-rated payments for such service of less than one (1) hour in fifteen (15)
		minute increments (i.e., rounded up to the nearest quarter hour). Thereafter,
		for the Tenth through Thirteenth Extension Years hereunder, the amount shall be
		increased by the CPI increment increase as expressed in Article B(1)(b) through
		(e), supra.
	 

	 
		For a third example only, for the Ninth
		Extension Year, the Extended Service Rate shall equal the daily Regular Service
		Rate per vehicle plus ten percent (10%) of the total daily Regular Service Rate
		(including vehicle, driver and escort) in effect for the 2004-05 Extension Year
		increased by (i) the Fixed Percentage Increase of
		three-and-seventy-four-hundredths percent (3.74%) (without any requirement for
		cost justification), and (ii) the annual
		CPI increment increase as expressed in Article B(1)(a),
		supra, plus the Escort Cost Reimbursement under
		Article (D), supra.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		41
	 

	 
		 
	 

	 
		route, unless a restricted time student is
		on such route and the additional time for the non-toll road route will exceed
		the time that the affected child shall be permitted to be on the bus, unless
		the bus shall not arrive at the school on time for the start of its regular
		session, and provided, that there shall be no additional cost to the
		BOE.
	 

	 
		(13) Hearings and Violations. The Contractor
		shall have the option to oppose an OPT Notice of Violation either in writing or
		in person. If the Contractor shall elect to submit a written opposition, the
		Contractor shall have the same rights as if it shall have appeared in person;
		however, the Contractor’s appeal shall be limited to the evidence
		presented in its written opposition.
	 

	 
		(14) Compensation for After School
		Programs. Contractors shall receive compensation for forty-five
		(45) minutes of service after the scheduled discharge time for after-school
		programs designated by the Director. For example, if a program shall have a
		5:30 P.M. dismissal, the Contractor shall receive payment from 3:30 P.M.
		through 6:15 P.M.
	 

	 
		(15) Volume Automotive Fuel Purchasing and Administration
		Program. The Volume Automotive Fuel Purchasing and
		Administration (also known as “VAFPA”) Program, designated as Article
		XV-A under contract serial numbers 0070, 8108, G8805, G8891 and G9325, and
		Article 38-A under contract serial number 7165, is hereby amended to the extent
		that the first sentence of Paragraph
		(A)(5) thereof shall read as
		follows:
	 

	 
		“Commencing on the date on which each
		ULSDF Contractor started to purchase ultra low sulfur diesel fuel from the VAF
		Supplier and until June 30, 2006, each such ULSDF Contractor shall use only
		ultra low sulfur diesel fuel in its diesel engine school buses, as made
		available by the VAF Supplier.”
	 

	 
		(16) Prompt Payment Discount. Effective from
		April 1, 2003 until June 30, 2010 under Serial Nos. 0070, 8108, G8805, G8891,
		G9325, and 7165, the BOE and the Contractor agree that the Contract is hereby
		amended by the deletion of all references to a 2% prompt payment discount,
		expressed in Article V entitled, “Payment,” of Contract Serial Nos.
		0070, 8108, G8805, G8891 and G9325 and expressed in Article 28 entitled,
		“Payment,” of Contract Serial No. 7165.
	 

	 
		(17) Billing Procedure; Deductions From Contractor
		Payments. No deductions or
		offsets from payments due Contractors under the Contract shall be made unless
		the Board shall contemporaneously provide the Contractor with a statement
		detailing the amount of the deduction and the basis therefor. Revisions to
		Contractor billing work sheets and payment authorization for charter services
		shall be made available to Contractors on line within 24 hours of such revision
		or authorization.
	 

	 
		(18) Field Trip Notices. The BOE shall
		advise all Contractors of all assignments of field trips after such assignments
		shall be made by posting such information on the BOE website.
	 

	 
		(19) Attachment of Contractor’s Contract Numbers and
		Items. To each of the previous extension and amendment
		agreements, the BOE had attached a listing of the Contractor’s contract
		serial numbers and item designations within each of such serial numbers. For
		purposes of 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		42
	 

	 
		 
	 

	 
		this Extension and Thirteenth Amendment
		Agreement, such listing shall be made part of “Attachment A,” as heretofore incorporated by reference.
	 

	 
		(20) All references in the Contract, as heretofore amended
		and extended, to the terms “Chancellor’s Board of Review” and/or
		“Board of Review,” are hereby deleted and replaced with the phrase
		“BOE Chief Executive for School Support Services or his/her
		successor.”
	 

	 
		(21) All other provisions of the Contract as amended by the
		1984 Extension and Fourth Amendment Agreement, by the 1987 Extension and Fifth
		Amendment Agreement, by the 1990 Extension and Sixth Amendment Agreement, by
		the 1993 Extension and Seventh Amendment Agreement, by the 1995 Extension and
		Eighth Amendment, by the 1996 Supplemental Ninth Amendment Agreement, by the
		2000 Extension and Eleventh Amendment Agreement, and by the Supplemental
		Twelfth Amendment of Contract, except those
		provisions herein noted and revised, shall remain in full force and effect. The
		1998 Supplemental Tenth Amendment Agreement for Project Read is no longer in
		any force and effect and is null and void for the period of this Extension and
		Thirteenth Amendment Agreement.
	 

	 
		* * *NO FURTHER TEXT APPEARS ON THIS
		PAGE * * *
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, the
		parties hereto have executed this Extension and Thirteenth Amendment of
		Contract as of the year, month and day last below expressed.
	 

	 
		 
	 

	 
			
				
				  For the Board:
				

			 	
				
				   
				

			 	
				
				  For the Contractor:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	

				
				  BOARD OF EDUCATION OF
 THE CITY SCHOOL DISTRICT OF
 THE CITY OF NEW YORK
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  (Print Name of Contractor
				  Entity)
				

			 
	
				
				  
 By: 
				

			 	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				  Maureen A. Hayes, Chief of
				  Staff
 for the Chancellor
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Signature)
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   (Print Name and Title)
				

			 

 

	 
		 
	 

	 
			
				
				  Approved as to legal
				  sufficiency:
				

			 	
				
				   
				

			 	
				
				  Contractor’s Taxpayer ID
				  No _______________
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	

				
				  The Contractor’s signatory
				  representative has subscribed to and sworn before me that he/she has duly
				  executed this Agreement with proper authority on behalf of the Contractor on
				  this
				

			 
	
				
				  By: 
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  BOE Office of Legal Services
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
			
				
				  Approval of description of terms and
				  conditions:
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  ____________ day of
				  __________________, 2005.
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  By: 
				

			 	
				
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				    BOE Office of Pupil
				  Transportation
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Notary Public)BOARD OF EDUCATION OF
		THE
		CITY
		OF
		NEW
		YORK
	 

	 
		EXTENSION AND ELEVENTH AMENDMENT OF CONTRACT FOR TRANSPORTATION OF
		GENERAL
		
	 

	 
		EDUCATION
		PUPILS
		TO
		PUBLIC
		AND
		NONPUBLIC SCHOOLS IN THE CITY OF NEW YORK
	 

	 
		TABLE OF CONTENTS
	 

	 
		 
	 

	 
			
				
				  PREAMBLE
				

			 	
				
				   
				

			 	
				
				  1
				

			 
	
				
				  (A)
				

			 	
				
				  TERM OF EXTENSION AND ELEVENTH
				  AMENDMENT AGREEMENT
				

			 	
				
				   
				

			 	
				
				  4
				

			 
	
				
				  (B)
				

			 	
				
				  PAYMENT DURING EXTENSION
				  PERIOD
				

			 	
				
				   
				

			 	
				
				  4
				

			 
	
				
				  (C)
				

			 	
				
				  AMENDMENTS TO INSURANCE
				  PROVISIONS
				

			 	
				
				   
				

			 	
				
				  14
				

			 
	
				
				  (D)
				

			 	
				
				  EMPLOYEE PROTECTION
				  PROVISIONS
				

			 	
				
				   
				

			 	
				
				  16
				

			 
	
				
				  (E)
				

			 	
				
				  VINTAGE AND AIR-CONDITIONING
				  REQUIREMENTS
				

			 	
				
				   
				

			 	
				
				  20
				

			 
	
				
				  (F)
				

			 	
				
				  MISCELLANEOUS VEHICLE,
				  OPERATIONAL AND FINANCIAL AMENDMENTS
				

			 	
				
				   
				

			 	
				
				  25
				

			 
	
				
				  (G)
				

			 	
				
				  GENERAL MISCELLANEOUS
				  AMENDMENTS
				

			 	
				
				   
				

			 	
				
				  29
				

			 
	
				
				  EXECUTORY SIGNATURES
				

			 	
				
				   
				

			 	
				
				  35
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		- i -
	 

	 
		 
	 

	 
	 

	 

	 
		BOARD
		OF EDUCATION OF THE CITY OF NEW YORK
	 

	 
		EXTENSION AND ELEVENTH AMENDMENT OF CONTRACT FOR TRANSPORTATION
		OF
		GENERAL
		
	 

	 
		EDUCATION
		PUPILS
		TO
		PUBLIC
		AND
		NONPUBLIC SCHOOLS IN THE CITY OF NEW YORK
	 

	 
		Extension and Eleventh Amendment
		Agreement made and entered into on the
		date expressed at the end hereof by and between the BOARD OF EDUCATION OF THE CITY SCHOOL DISTRICT OF THE CITY OF NEW YORK (hereinafter expressed as “Board of
		Education,” “Board” or “BOE”),1 with
		principal headquarters located at the Tweed Courthouse, 52 Chambers Street New
		York, New York 10007-1222, and the Contractor whose name, address and
		authorized signature appear at the end of this document (hereinafter expressed
		as “Contractor”).
	 

	 
		W I TN E S S E T H

	 

	 
		WHEREAS, in 1979
		the BOE publicly solicited competitive bids for the transportation of general
		education pupils in public and nonpublic schools under Contract Serial Nos.
		0065, 0075 and 8107;2 and,
	 

	 
		WHEREAS, the Contractor tendered a bid(s) under one or more
		aforementioned contract serial numbers and was duly awarded a contract(s)
		including certain Employee Protection Provisions (1st Amendment) for
		the transportation of regular education pupils attending public and nonpublic
		schools; and,
	 

	 
		WHEREAS, the original terms of all contracts under Serial Nos.
		0065, 0075, and 8107 would have expired on June 30, 1983 unless extended; and,
		Education Law §305, Subdivision (14)(a)-(a-1) authorizes
		extensions and provides a method for annual payment increases linked to defined
		regional Consumer Price Index (hereinafter expressed as “CPI”);
		and,
	 

	 
		WHEREAS, in 1983 the BOE and various contractors agreed to amend
		(2nd Amendment) and extend contracts under Serial Nos. 0065, 0075
		and 8107 through June 30, 1986; and,
	 

	 
		WHEREAS, in 1986 the BOE and various contractors agreed to amend
		(3rd Amendment erroneously labeled as 2nd Amendment) and
		extend further all contracts under Serial Nos. 0065, 0075 and 8107 through June
		30, 1989; and, the BOE and the affected contractors amended the said 1986
		Extension and Amendment Agreement further on June 24, 1986 (originally
		unnumbered 4th Amendment); and,
	 

	 
		WHEREAS, in 1986
		the BOE publicly solicited competitive bids for transportation of general
		education pupils in public and nonpublic schools under Contract Serial No. 9888
		that included certain Employee Protection Provisions;3 and,
	 

	 
		______________
	 

	 
		1 The terms “New York City
		Department of Education,” “Department,” “NYCDOE” and
		“DOE,” wherever they appear in this Extension and Eleventh Amendment
		Agreement, are “doing-business-as” or “dba” names of the
		Board of Education of the City School District of the City of New York.
	 

	 
		2 By their original
		specifications, all contracts under Serial Nos. 0065, 0075 and 8107 provide for
		ten-month pupil transportation service from September through June of each
		school or extension year.
	 

	 
		3 By their original
		specifications, all contracts under Serial No. 9888 provide for ten-month pupil
		transportation service from September through June of each school or extension
		year.
	 

	 
		 
	 

	 
		 
	 

	 
		-1-
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		WHEREAS, in 1989 the BOE and various contractors agreed to amend
		(5th Amendment erroneously labeled as the 3rd Amendment)
		and extend further all contracts under Serial Nos. 0065, 0075 and 8107 through
		June 30, 1992; and,
	 

	 
		WHEREAS, the original terms of all contracts under Serial No.
		9888 would have expired in June 30, 1991, unless extended; and, Education Law
		§305, Subdivision (14)(a)-(a-1) allows extensions and provide a method for
		annual payment increases linked to defined regional CPI; and,
	 

	 
		WHEREAS, in 1991, the BOE and various contractors agreed for the
		first time to amend and extend all contracts under Serial No. 9888 through June
		30, 1994 (1st Amendment); and,
	 

	 
		WHEREAS, in 1992 the BOE and various contractors agreed to amend
		(6th amendment erroneously labeled as the 4th amendment)
		and extend further all contracts under Serial Nos. 0065, 0075 and 8107 through
		June 30, 1995; and,
	 

	 
		WHEREAS, in 1994 the BOE and various contractors agreed to amend
		and extend further all contracts under Serial No. 9888 (2nd
		amendment) through June 30, 1997; and, 
	 

	 
		WHEREAS, in 1995 the BOE publicly solicited competitive bids for
		transportation of general education pupils in public and nonpublic schools
		under Contract Serial No. 7263 that included certain Employee Protection
		Provisions;4 and,
	 

	 
		WHEREAS, in 1995 the City of New York, the BOE, various
		contractors, and delegates of the Amalgamated Transit Union, Local Division
		1181-1061, the Transit Workers Union, Local 100, and various other labor
		organizations representing school bus workers entered into negotiations to deal
		with increasing costs of school bus service in the face of markedly diminished
		City and school district financial resources; and, the City of New York, the
		BOE, various contractors, and the labor organizations reached an accord that
		averted possible school bus service interruptions and produced significant
		prospective cost savings for the City and the BOE; and,
	 

	 
		WHEREAS, as a result of the said accord among the City, the BOE,
		various contractors, and the labor organizations in 1995, the BOE and various
		contractors agreed thereupon to amend and/or extend further all contracts under
		Serial Nos. 0065, 0075, 8107 (7th Amendment erroneously labeled
		6th Amendment), 9888 (3rd amendment), by which such
		contracts were extended until June 30, 2000;5 and, 
	 

	 
		______________
	 

	 
		4 By their original
		specifications, all contracts under Serial No. 7263 provide for twelve-month
		pupil transportation service from July through June of each school or extension
		year as compared with other serial numbers covered by this Extension and
		Eleventh Amendment Agreement that provide for ten-month pupil transportation
		service from September through June of each school or extension year.
	 

	 
		5 While contracts under Serial
		No. 7263 were amended in 1995, they were not extended at that time, because the
		BOE made the determination to allow such contracts to run their original three
		(3) year terms. The 1995 amendment to contracts under Serial No. 7263 remains
		unnumbered.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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				  ELEVENTH
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		WHEREAS, in 1996, the BOE and various contractors including the
		Contractor mutually determined that changes had occurred in the banking,
		financial services and insurance markets affecting the availability and
		affordability of performance bonds, letters of credit and other forms of
		performance security; and, the BOE and various contractors including the
		Contractor entered into a Supplemental Eighth Amendment of Contract for General
		Education Pupil Transportation Services thereby modifying and revising
		performance security provisions of Contract Serial Nos. 0065, 0075, 8107
		(erroneously labeled 7th Amendment), and 9888 (4th
		Amendment) for the rest of the extension period until June 30,
		2000;6 and,
	 

	 
		WHEREAS, the original terms of all contracts under Serial No.
		7263 would have expired in June 30, 1998, unless extended; and, Education Law
		§305, Subdivision (14)(a)-(a-1) allows extensions and provide a method for
		annual payment increases linked to defined regional CPI; and,
	 

	 
		WHEREAS, in 1998, the BOE and various contractors agreed for the
		first time to amend and extend all contracts under Serial No.7263 through June
		30, 2000 (1st Amendment); and,
	 

	 
		WHEREAS, in 2000 the BOE and various contractors agreed to amend
		and extend further all contracts under Serial Nos. 0065, 0075 and 8107
		(9th Amendment), 9888 (5th Amendment), and 7263
		(2nd Amendment) through June 30, 2005; and,
	 

	 
		WHEREAS, effective as of Mach 31, 2003, the BOE and the
		contractors further supplemented and amended all contracts under Serial Nos.
		0065, 0075 and 8107 (10th Amendment), 9888 (6th
		Amendment), and 7263 (3rd Amendment) to create BOE-sponsored,
		centralized purchasing programs for automobile liability insurance and vehicle
		fuels and to reduce other contract cost factors; and,
	 

	 
		WHEREAS, the BOE has determined that all contracts under Serial
		Nos. 0065, 0075, 8107 (11th Amendment, 7263 (4th
		Amendment), and 9888 (7th Amendment) should be still further amended
		and extended, and the Contractor does hereby so agree, acknowledge and
		stipulate; and,
	 

	 
		WHEREAS, in accordance with the BOE contract authorization
		process, the BOE Office of Pupil Transportation (hereinafter expressed as
		“OPT”) submitted an official request for authorization (hereinafter
		expressed as “RA”) to the
		BOE Office of the Chancellor; and, Chancellor Joel I. Klein approved the said
		RA
		on            ,
		2005, thus authorizing OPT to enter into further amendment and extension of
		contracts under Serial Nos. 0065, 0075, 7263, 8107 and 9888 (hereinafter
		expressed collectively as “Contract”) until a termination date not
		later than June 30, 2010, unless further extended; and,
	 

	 
		WHEREAS, the parties
		mutually desire to make this agreement for the further amendment and further
		extension of the Contract as heretofore amended and extended (hereinafter
		expressed as “Extension and Eleventh Amendment Agreement”);
	 

	 
		______________
	 

	 
		6 Contracts under Serial No. 7263
		were not included in this Supplemental Amendment Agreement, because the
		performance security provisions of such contracts had been updated to reflect
		changed circumstances.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		NOW, THEREFORE, in
		consideration of the heretofore-recited stipulations and the
		hereinafter-expressed terms, conditions and specifications, the BOE and the
		Contractor, as the parties to this Extension and Eleventh Amendment Agreement,
		do hereby stipulate and agree both as above and as follows:
	 

	 
			
				
				  (A)
				

			 	
				
				  TERM OF EXTENSION AND ELEVENTH AMENDMENT
				  AGREEMENT.
				

			 

 

	 
		All references to the termination of the
		Contract, by whatever terminology, shall be deemed hereafter to read “June
		30, 2010, unless further extended.”
	 

	 
			
				
				  (B)
				

			 	
				
				  PAYMENT
				  DURING EXTENSION
				  PERIOD.
				

			 

 

	 
		ARTICLE V-A entitled, “PAYMENT DURING  PERIOD OF
		EXTENSION,” of
		contracts under Serial Nos. 0065, 0075 and 8107, ARTICLE 29(D) of contracts
		under Serial No. 9888, and ARTICLE 28(C) of contracts under Serial No. 7263 are
		hereby further amended to read as follows for the term of this Extension and
		Eleventh Amendment Agreement:
	 

	 
		“(1) Any
		provisions of ARTICLES V, 28 or 29 (as applicable) to the contrary
		notwithstanding, the daily rate(s) per vehicle during this Extension Period
		shall be deemed to be adjusted each year according to the following formulae
		subject to the Office of Pupil Transportation (hereinafter expressed as
		‘OPT’) Director’s approval of all or any portion(s) of the
		Contractor’s claims in the below-described annual Cost Justification
		Financial Statements:
	 

	 
		“(a) During the
		Extension Year of July 1, 2005 through June 30, 2006, the Contractor’s
		daily rate(s) per vehicle in effect for the Extension Year of July 1, 2004
		through June 30, 2005 in accordance with the schedule of rates annexed hereto
		and made a part hereof as ‘Attachment A,’ shall be increased by
		five-and-sixty-sixths-hundredths percent (5.66%), (hereinafter expressed as
		‘Fixed Percentage Increase’)7 and such increased rate
		shall be further increased by an amount not to exceed whichever of the
		following represents the least amount of actual increase: (i) the same percentage by which the Consumer Price Index
		(hereinafter expressed as ‘CPI’) as of May 2005 shall have increased
		over the CPI as of May 2004; or, (ii) the amount
		in dollars expressed as a percentage by which the Contractor’s actual
		Total Allowable Costs during the Extension Year from July 1, 2004 through June
		30, 2005 shall have increased over each Contractor’s actual Total
		Allowable Costs during the Extension Year of July 1, 2003 through June 30,
		2004, plus any previously ‘Unabsorbed Percentage Cost
		Increases’ for Extension Years 2000-2001 through 2004-2005 to the extent
		such Unabsorbed Percentage Cost Increases shall not have been 
	 

	 
		______________
	 

	 
		7 For contracts under Serial No.
		7263 only, the Fixed Percentage Increase for Extension Year
		2005-2006 shall be three-and-seventy-four-hundredths-percent percent (3.74%).
		The Fixed Percentage Increase for the   2005-2006 Extension Year of
		five-and-sixty-six-hundredths percent (5.66%) for contracts under Serial Nos.
		0065, 0075, 8108 and 9888 and three-and-seventy-four-hundredths-percent percent
		(3.74%) for contracts under Serial No. 7263 shall not be subject to any
		requirement of equivalent cost increase justification. Cf.
		Paragraph 5(a) and ARTICLE XIX, Paragraph
		(B)(2)(a)(i), infra, as well
		as Notes 11 and 13,
		infra.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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				  AMENDMENT AGREEMENT
				

			 	
				
				   
				

			 	
				
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		applied to prior extension year increases.
		The term ‘Unabsorbed Percentage Cost Increases’ means the portion of
		the Contractor’s percentage increase in actual Total Allowable Costs
		(applicable to the calculation of a rate increase for a particular Extension
		Year), which exceeded the applicable CPI percentage increase for such Extension
		Year. By way of example, for Extension Year 2003-2004 a contractor was entitled
		to a maximum increase of its daily rate per vehicle equal to the lesser of
		(a) the percentage increase of the CPI in May 2003 over the
		CPI in May 2002; and, (b) the
		percentage increase of the Contractors actual Total Allowable Costs for
		Extension Year 2002-2003 over the Contractor’s actual Total Allowable
		Costs for Extension Year 2001-2002. If such CPI increase were four percent (4%)
		and such Contractor’s actual cost increase were six percent (6%), the
		Contractor would have received a rate increase of four percent (4%), and would
		have an Unabsorbed Percentage Cost Increase of two percent (2%).
	 

	 
		“(b) During the
		Extension Year of July 1, 2006 through June 30, 2007, the Contractor’s
		daily rate(s) per vehicle shall be augmented by an amount not to exceed
		whichever of the following represents the least amount of actual increase:
		(i) the same percentage by which the CPI as of May 2006
		shall have increased over the CPI as of May 2005; or, (ii) the amount
		in dollars expressed as a percentage by which the Contractor’s actual
		Total Allowable Costs during the Extension Year of July 1, 2005 through June
		30, 2006 shall have increased over the Contractor’s actual Total Allowable
		Costs during the Extension Year of July 1, 2004 through June 30, 2005,
		plus any previously Unabsorbed Percentage Cost Increases
		from Extension Year 2000-2001 through 2005-2006 to the extent such Unabsorbed
		Percentage Cost Increases shall not have been applied to prior extension year
		increases.
	 

	 
		“(c) During the
		Extension Year of July 1, 2007 through June 30, 2008, the Contractor’s
		daily rate(s) per vehicle shall be augmented by an amount not to exceed
		whichever of the following represents the least amount of actual increase:
		(i) the same percentage by which the CPI as of May 2007
		shall have increased over the CPI as of May 2006; or, (ii) the amount
		in dollars expressed as a percentage by which the Contractor’s actual
		Total Allowable Costs during the Extension Year of July 1, 2006 through June
		30, 2007 shall have increased over each Contractor’s actual Total
		Allowable Costs during the Extension Year of July 1, 2005 through June 30,
		2006, plus any previously Unabsorbed Percentage Cost Increases
		from Extension Year 2000-2001 through 2006-2007 to the extent such Unabsorbed
		Percentage Cost Increases shall not have been applied to prior extension year
		increases.
	 

	 
		“(d) During the
		Extension Year of July 1, 2008 through June 30, 2009, the Contractor’s
		daily rate(s) per vehicle shall be augmented by an amount not to exceed
		whichever of the following represents the least amount of actual increase:
		(i) the same percentage by which the CPI as of May 2008
		shall have increased over the CPI as of May 2007; or, (ii) 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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				  ELEVENTH
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		the amount in dollars expressed as a
		percentage by which the Contractor’s actual Total Allowable Costs during
		the Extension Year of July 1, 2007 through June 30, 2008 shall have increased
		over the Contractor’s actual Total Allowable Costs during the Extension
		Year of July 1, 2006 through June 30, 2007, plus any
		previously Unabsorbed Percentage Cost Increases from Extension Year 2000-01
		through 2007-2008 to the extent such Unabsorbed Percentage Cost Increases shall
		not have been applied to prior extension year increases.
	 

	 
		“(e) During the
		Extension Year of July 1, 2009 through June 30, 2010, the Contractor’s
		daily rate(s) per vehicle shall be augmented by an amount not to exceed
		whichever of the following represents the least amount of actual increase:
		(i) the same percentage by which the CPI as of May 2009
		shall have increased over the CPI as of May 2008; or, (ii) the amount
		in dollars expressed as a percentage by which the Contractor’s actual
		Total Allowable Costs during the Extension Year of July 1, 2008 through June
		30, 2009 shall have increased over the Contractor’s actual Total Allowable
		Costs during the Extension Year of July 1, 2007 through June 30, 2008,
		plus any previously Unabsorbed Percentage Cost Increases
		from Extension Year 2000-2001 through 2008-2009 to the extent such Unabsorbed
		Percentage Cost Increases shall not have been applied to prior extension year
		increases.
	 

	 
		“(2)
		Decrease in
		CPI. Anything in the foregoing payment increase provisions to
		the contrary notwithstanding, where there is a decrease in the regional
		consumer price index for the New York, New York-Northeastern, New Jersey area
		as based upon the index for all urban consumers (hereinafter expressed as
		“CPI-U”) during the preceding twelve month period, the amount to be
		paid to the Contractor in the succeeding extension year will reflect that
		decrease in a manner satisfactory to the New York State Education Department
		(hereinafter expressed as ‘SED’).
	 

	 
		“(3) Special Costs for Drivers Covered by
		Statute. Anything in the foregoing payment increase provisions to
		the contrary notwithstanding, the BOE shall pay the Contractor each extension
		year for actual costs allowable pursuant to Education Law
		§305(14)(c) under the following conditions, even if such reimbursement
		shall cause annual payments to exceed the relevant CPI increment. To be
		eligible for such payment, the Contractor shall provide to OPT a separate fully
		detailed written cost reimbursement request for reimbursement of expenses
		covered by Education Law §305(14)(c), which shall be described for purposes
		of this Contract as ‘special vehicle operator administrative costs,’
		which reimbursement shall equal (a) the actual
		costs of qualifying criminal history and driver licensing testing fees
		attributable to special requirements of Vehicle and Traffic Law Articles 19 and 19–A, and (b) the actual
		costs of all diagnostic tests and physical performance tests that shall be
		deemed necessary by an examining physician or the Director to determine whether
		each applicant to drive a school bus under this Contract possesses the physical
		and mental ability to operate a school bus and to perform satisfactorily all
		other responsibilities of a school bus driver as required by this Contract and
		all applicable Federal, State of New York, 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				  EXTENSION AND
				  ELEVENTH
				  AMENDMENT AGREEMENT
				

			 	
				
				   
				

			 	
				
				  -PAGE 7-
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		City of New York and BOE laws, rules,
		regulations and policies.8 All Contractor cost claims under
		Education Law §305(14)(c) shall be subject to review and/or
		audit by the BOE, its employees and agents. Upon BOE approval of Contractor
		cost claims under Education
		Law §305(14)(c), the BOE shall pay
		the Contractor for such actual costs without interest.
	 

	 
		“(4) Definitions. The
		definitions below control the meanings of the described terms wherever they
		appear in this Contract. These definitions add to and supplement any
		definitions or instructions expressed in the original Contract and, as such, do
		not supersede, revoke, replace, revise or limit any similar or analogous
		provisions in the original Contract. 
	 

	 
		“(a) For
		Contracts under Serial Nos. 0065, 0075 and 8107 the following shall
		apply:
	 

	 
			
				
				   
				

			 	
				
				  “(i)
				

			 	
				
				  ‘Twenty-third (23rd)
				  Extension Year’ means July 1, 2005 until June 30, 2006.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(ii)
				

			 	
				
				  ‘Twenty-fourth
				  (24th) Extension Year’ means July 1, 2006 until June 30,
				  2007.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(iii)
				

			 	
				
				  ‘Twenty-fifth (25th)
				  Extension Year’ means July 1, 2007 until June 30, 2008.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(iv)
				

			 	
				
				  Twenty-sixth (26th)
				  Extension Year’ means July 1, 2008 until June 30, 2009.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(v)
				

			 	
				
				  Twenty-seventh (27th)
				  Extension Year’ means July 1, 2009 until June 30, 2010.
				

			 

 

	 
		“(b) For
		Contracts under Serial No. 9888 the following shall apply:
	 

	 
			
				
				   
				

			 	
				
				  “(i)
				

			 	
				
				  ‘Fifteenth (15th)
				  Extension Year’ means July 1, 2005 until June 30, 2006.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(ii)
				

			 	
				
				  ‘Sixteenth (16th)
				  Extension Year’ means July 1, 2006 until June 30, 2007.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(iii)
				

			 	
				
				  ‘Seventeenth (17th)
				  Extension Year’ means July 1, 2007 until June 30, 2008.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(iv)
				

			 	
				
				  ‘Eighteenth (18th)
				  Extension Year’ means July 1, 2008 until June 30, 2009.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(v)
				

			 	
				
				  ‘Nineteenth (19th)
				  Extension Year” means July 1, 2009 until June 30, 2010.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(c)
				

			 	
				
				  For Contracts under Serial No. 7263
				  the following shall apply:
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(i)
				

			 	
				
				  ‘Eighth (8th)
				  Extension Year’ means July 1, 2005 until June 30, 2006.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(ii)
				

			 	
				
				  ‘Ninth (9th)
				  Extension Year’ means July 1, 2006 until June 30, 2007.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(iii)
				

			 	
				
				  ‘Tenth (10th)
				  Extension Year’ means July 1, 2007 until June 30, 2008.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(iv)
				

			 	
				
				  ‘Eleventh (11th)
				  Extension Year’ means July 1, 2008 until June 30, 2009.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “(v)
				

			 	
				
				  ‘Twelfth (12th)
				  Extension Year’ means July 1, 2009 until June 30, 2010.
				

			 

 

	 
		______________
	 

	 
		8 Allowable diagnostic tests and
		physical performance tests shall include pre-employment medical and physical
		performance tests and examinations and pre-employment alcohol and substance
		abuse tests. Allowable diagnostic and physical performance tests shall
		not include tests and examination performed during the
		course of a driver’s employment with the Contractor such as, but not
		limited to, random substance and/or alcohol abuse tests, post-accident
		substance and/or alcohol abuse tests, reasonable suspicion substance and/or
		alcohol abuse tests, and/or annual medical examinations.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		“(d) The term
		‘Consumer Price Index’ (herein expressed as ‘CPI’), as of a
		given date, is defined as that statistic of the United States Department of
		Labor or its successor agency, which the New York State Education Department
		(herein expressed as ‘SED’) deems as the ‘regional consumer
		price index for the New York, New York-Northeastern, New Jersey area, based
		upon the index for all urban consumers (CPI-U),’ according to
		Education Law §305(14)(a)-(a-1) as the same may be updated,
		revised or otherwise changed during the life of this Extension and Eleventh
		Amendment Agreement. If Education
		Law §305(14)(a)-(a-1) shall be
		amended to permit stated or fixed percentage(s) of annual rate increase(s) for
		pupil transportation contract extensions, which increase(s) may exceed the
		applicable CPI increment(s), this Contract shall be deemed to be amended
		automatically and without the need for any action by the parties by
		substituting such stated or fixed percentage(s) of increase in place of the
		actual percentage(s) of increase in the CPI in any extension year in which the
		CPI shall be lower that the stated or fixed percentage(s).
	 

	 
		“(e) The term
		‘Contractor’s average cost per vehicle per day’ for a given
		extension year is defined as the Contractor’s ‘Total Allowable
		Costs’ for that extension year divided by the total number of
		‘vehicle days.’
	 

	 
		“(f) The term
		‘Total Allowable Costs’ is defined as the Contractor’s actual
		accrued costs related directly to transportation services provided to the BOE
		under this Contract.
	 

	 
		“(g) The term
		‘vehicle days’ is defined as the total number of ‘authorized
		vehicles’ the Contractor actually operates multiplied by the number of
		actual school days per Extension Year for the term of this Extension and
		Eleventh Amendment Agreement,9 except for
		certain additional vehicles which shall be treated in the manner hereinafter
		provided. 
	 

	 
		“(h) The term
		‘authorized vehicles’ is defined as the total number of contract and
		additional vehicles, but excluding spare vehicles, that the Contractor shall
		have been granted expressly by the Director. If the Director shall grant the
		Contractor additional vehicles during any given Extension Year of this
		Extension and Eleventh Amendment Agreement, such additional vehicles shall be
		counted among the ‘authorized vehicles’ during the first Extension
		Year in which such vehicles shall be awarded but only to the extent of the
		actual number of school days that the Contractor actually shall have operated
		the affected additional vehicles.10 During the succeeding Extension
		Year(s), such additional vehicles shall be counted as ‘authorized
		vehicles’ for all actual school days. If the Contractor has a 10-month
		
	 

	 
		______________
	 

	 
		9 In calculating the
		Contractor’s average cost per vehicle day for purposes of determining rate
		augmentation under this Extension and Thirteenth Amendment Agreement, the
		actual number of days that vehicles shall operate (instead of a fixed number of
		days as provided under previous extension and amendment agreements) shall be
		applied for each Extension Year included in such calculation.
	 

	 
		10 This partial exclusion of
		additional vehicles during the first extension year of award shall not apply to
		any vehicles that the Contractor may obtain by assignment or other transfer of
		contract or by acquiring the corporate shares of another school bus
		contractor.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		Contract(s) and the Director shall grant the
		Contractor summer work beyond the normal 10 months from September to June, the
		summer vehicles only shall
		be exempt from inclusion in the cost justification process.
	 

	 
		“(i) The term
		‘Cost Justification Financial Statement’ is defined as a written
		‘review report’ prepared by a Certified Public Accountant
		(hereinafter expressed as ‘CPA’) or Public Accountant (hereinafter
		expressed as ‘PA’) licensed by the State of New York, except as
		otherwise noted herein. Each Cost Justification Financial Statement shall
		include all of the facts and figures deemed necessary by the Director and/or
		the SED to provide a complete view of the Contractor’s cost increase
		claims for the applicable comparative periods specified in this Extension and
		Eleventh Amendment Agreement. Each review report shall state that a review
		shall have been performed in accordance with AU623, et seq., as
		established and periodically updated by the American Institute of Certified
		Public Accountants (hereinafter expressed as “AICPA”), and the BOE
		Office of Auditor General’s manual of cost increase justification rules
		and procedures (hereinafter expressed as “OAG Manual”) as of the date
		of a given review report, and that the information in each Cost Justification
		Financial Statement shall have been based upon the representations of the
		Contractor’s management. Each review report shall describe the nature of a
		review as distinct from an audit and shall describe the standard procedures
		that the CPA/PA shall have performed, e.g., an inquiry
		and an analytical review. Each review report shall give the limited assurance
		that, based upon the review, the CPA/PA shall not have been aware of any
		material modifications that should be made to the Cost Justification Financial
		Statement for it to be in conformity with AU623, et seq., as
		established and periodically updated by the AICPA, and the OAG Manual. A
		compilation report is insufficient to qualify as a Cost Justification
		Statement. In addition, the CPA/PA preparing each review report must state that
		he/she shall have studied the cost justification manual supplied by the Board
		and shall have applied the standards contained in the said OAG Manual to the
		development of each Cost Justification Financial Statement. If the Contractor
		shall not have had a CPA-audited financial report performed for any purpose
		within the three (3) years before June 30, 2005, then the Contractor must
		submit an audited Cost Justification Financial Statement by a CPA for its first
		or second such statement under this Extension and Eleventh Amendment
		Agreement.11 The CPA/PA who shall prepare each Cost Justification
		Financial Statement must have no interest in this Contract, the Contractor
		and/or any entity affiliated in any manner with the Contractor and must so
		certify in writing in each review report. Each Cost Justification Financial
		Statement shall be in a form prescribed by the Director as approved by
		SED.
	 

	 
		______________
	 

	 
		11 Such a CPA-audited Cost
		Justification Financial Statement must comply in all respects with AR 9100.63
		entitled, “Special Purpose Financial Presentations to Comply with
		Contractual or Regulatory Provisions,” as established and periodically
		updated by the AICPA.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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				  ELEVENTH
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		“(5) Cost
		Justification Financial Statements.
		Education Law §305(14) requires the Contractor to substantiate
		any cost increases that he/she claims to justify annual payment increases
		during the term of this Extension and Eleventh Amendment Agreement. The
		Director shall determine whether to approve all or any portion(s) of the claims
		in each of the Contractor’s annual Cost Justification Financial Statements
		in accordance with the following:
	 

	 
		“(a) To substantiate any payment increases12
		received under ARTICLES V-A, 28(C) or 29(D) during the Extension Year of July
		1, 2005 to June 30, 2006, the Contractor must submit by September 30, 2005,
		(i) a Cost Justification Financial Statement(s) detailing
		the Total Allowable Costs incurred by the Contractor for all its operations
		and, separately, for its operations under this Contract for Extension Years
		2004-2005 and 2003-2004, and (ii) a distinct
		Cost Justification Financial Statement(s) detailing the Total Allowable Costs
		incurred by the Contractor for all its operations and, separately, for its
		operations under the Contract for each Extension Year for which application
		shall be made for any Unabsorbed Percentage Cost Increases.
	 

	 
		“(b) To
		substantiate any payment increases received under ARTICLES V-A, 28(C) or 29(D)
		during the Extension Year of July 1, 2006 to June 30, 2007, the Contractor must
		submit by September 30, 2006, (i) a Cost
		Justification Financial Statement(s) detailing the Total Allowable Costs
		incurred by the Contractor for all its operations and, separately, for its
		operations under this Contract for Extension Years 2005-2006 and 2004-2005, and
		(ii) a distinct Cost Justification Financial Statement(s)
		detailing the Total Allowable Costs incurred by the Contractor for all its
		operations and, separately, for its operations under this Contract for each
		Extension Year for which application shall be made for any Unabsorbed
		Percentage Cost Increases.
	 

	 
		“(c) To
		substantiate any payment increases received under ARTICLES V-A, 28(C) or 29(D)
		during the Extension Year of July 1, 2007 to June 30, 2008, the Contractor must
		submit by September 30, 2007, (i) a Cost
		Justification Financial Statement(s) detailing the Total Allowable Costs
		incurred by the Contractor for all its operations and, separately, for its
		operations under this Contract for Extension Years 2006-2007 and 2005-2006, and
		(ii) a distinct Cost Justification Financial Statement(s)
		detailing the Total Allowable Costs incurred by the Contractor for all its
		operations and, separately, for its operations under this Contract for each
		Extension Year for which application shall be made for any Unabsorbed
		Percentage Cost Increases. 
	 

	 
		______________
	 

	 
		12 The Fixed Percentage Increase
		provided hereunder, including either the five-and-sixty-six-hundredths percent
		(5.66%) increase for contracts under Serial Nos. 0065, 0075, 8108 and 9888 or
		the three-and-seventy-four-hundredths percent (3.74%) increase for contracts
		under Serial No. 7263, shall not be
		subject to any requirement for cost justification under this Extension and
		Thirteenth Amendment Agreement. Cf. ARTICLE V-A,
		ARTICLE 28(C), or
		ARTICLE 29(D),
		supra.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		“(d) To
		substantiate any payment increases received under ARTICLES V-A, 28(C) or 29(D)
		during the Extension Year of July 1, 2008 to June 30, 2009, the Contractor must
		submit by September 30, 2008, (i) a Cost
		Justification Financial Statement(s) detailing the Total Allowable Costs
		incurred by the Contractor for all its operations and, separately, for its
		operations under this Contract for Extension Years 2007-2008 and 2006-2007, and
		(ii) a distinct Cost Justification Financial Statement(s)
		detailing the Total Allowable Costs incurred by the Contractor for all its
		operations and, separately, for its operations under this Contract for each
		Extension Year for which application shall be made for any Unabsorbed
		Percentage Cost Increases.
	 

	 
		“(e) To
		substantiate any payment increases received under ARTICLES V-A, 28(C) or 29(D)
		during the Extension Year of July 1, 2009 to June 30, 2010, the Contractor must
		submit by September 30, 2009, (i) a Cost
		Justification Financial Statement(s) detailing the Total Allowable Costs
		incurred by the Contractor for all its operations and, separately, for its
		operations under this Contract for Extension Years 2008-2009 and 2007-2008, and
		(ii) a distinct Cost Justification Financial Statement(s)
		detailing the Total Allowable Costs incurred by the Contractor for all its
		operations and, separately, for its operations under this Contract for each
		Extension Year for which application shall be made for any Unabsorbed
		Percentage Cost Increases.
	 

	 
		“(f) Until six
		(6) years after completion of its services hereunder or six (6) years after the
		termination date of this Extension and Eleventh Amendment Agreement, whichever
		shall occur later, the Contractor shall maintain complete and correct books and
		records related to all aspects of the Contractor’s obligations hereunder.
		Records must be maintained separately so as to identify clearly the expenses
		applicable to this Contract, all previous extension and amendment agreements,
		and this Extension and Eleventh Amendment Agreement and must be distinguishable
		from all costs not incurred under this Contract, all previous extension and
		amendment agreements, and this Extension and Eleventh Amendment Agreement.
		Except as provided in this subparagraph, all other provisions of this Contract,
		as amended, that relate to the maintenance of records shall remain in full
		force and effect.
	 

	 
		“(g) The
		Contractor will supply in each annual Cost Justification Financial Statement
		all data required by the SED related to this Contract, and the submittal shall
		include, without limitation to, SED-approved cost justification forms. The
		Contractor must supply promptly any and all additional cost data as required by
		the BOE or the SED.
	 

	 
		“(6) Required Analysis of Costs. To determine
		the allowable increase in costs for a given extension year, as specified in
		ARTICLE V-A(1), 28(C)(1) or 29(D)(1) of this Contract, the following analysis
		of the Cost Justification Financial Statement must be undertaken:
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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				  ELEVENTH
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				  “Step 1:
				

			 	
				
				  Divide the total applicable annual
				  operating costs by the number of vehicle days for both the base year and the
				  year previous to the base year to determine the average daily cost per vehicle
				  for each of those years. The base year is the year immediately before the
				  extension year to which a rate increase is to be applied.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “Step 2:
				

			 	
				
				  Subtract the average daily cost per
				  vehicle for the year previous to the base year from the average daily cost per
				  vehicle for the base year to determine the increase in the average daily cost
				  per vehicle.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “Step 3:
				

			 	
				
				  Divide the increase in the average
				  daily cost per vehicle by the average daily cost per vehicle for the year
				  previous to the base year to determine the percent increase in the average
				  daily cost per vehicle.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “Step 4:
				

			 	
				
				  Compare the percent of increase in
				  the average daily cost per vehicle to the percentage by which the CPI as of May
				  of the base year shall have increased over the CPI as of May of the year
				  previous to the base year. Whichever is the lesser of the two (2) percentages
				  shall be the allowable increase applied to the daily rate(s) for the affected
				  Extension Year.
				

			 

 

	 
			
				
				   
				

			 	
				
				  “Step 5:
				

			 	
				
				  For Extension Years 2005-06 through
				  2009-10, repeat Steps 1-4. For each such Extension Year, determine the percent
				  of increase in the average daily cost per vehicle. If the percent of increase
				  in the average daily cost per vehicle resulting in Step 3 shall be insufficient
				  to justify fully the CPI increment in Step 4, add any previously Unabsorbed
				  Cost Percentage Increases from the applicable Extension Year(s) expressed
				  heretofore at Paragraphs
				  (1)(a)-(e) of ARTICLE V-A, 28(C) or
				  29(D) of the Contract.
				

			 

 

	 
		“(7)
		Alternative Comparison of
		Costs. As an alternative to the
		procedures expressed in Subparagraph
		(6), supra, to
		determine the allowable increase in daily rates per vehicle for Extension Years
		2005-06 through 2009-10, the Contractor may elect with respect to each such
		Extension Year to utilize the percentage increase in the Contractor’s
		Total Allowable Costs on an aggregate business entity basis with respect to
		each of the applicable base years as compared to each of the years prior
		thereto, respectively. Nevertheless, the Contractor must undertake the analysis
		described in the preceding sentence in the form of an annual Cost Justification
		Financial Statement as defined in Paragraph 4(i),
		supra. If the Contractor shall not make the foregoing
		election on or before August 15th of each Extension Year, the
		analysis of the Cost Justification Financial Statement, as provided in
		Subparagraph (6), supra, shall
		apply and govern.
	 

	 
		 “(8)
		Allowable Cost
		Increases. Total Allowable Costs are limited by the following:
		costs not attributable to the Contractor’s operations under this Contract,
		costs that are not ordinary and/or reasonable, costs that are not documented,
		and/or costs disallowed by the SED and/or by BOE auditors for non-compliance
		with the definition of Total Allowable Costs as limited by this Paragraph (8).
		
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		Such costs shall be subject to disallowance
		by the BOE and are not permitted to justify increases of the daily rate(s) per
		vehicle. The Director shall have the right to prescribe miscellaneous
		standardized cost categories for all contractors including the
		Contractor.
	 

	 
		“(9) Access
		to Subcontractors.
		If with the Director’s approval
		the Contractor subcontracts any portion of the services under this Contract,
		the Contractor must include in any such subcontract a provision that allows
		full and unimpeded access by the BOE, the SED and/or the New York City Office
		of the Comptroller to the books and records of a subcontractor for inspection,
		audit and copying purposes. The Contractor does hereby agree and warrant to
		render all necessary assistance to obtain any requested documents from
		subcontractors. The Contractor’s inability to obtain requested
		documentation from any subcontractors shall not excuse a failure to provide the
		documentation as a means to justify payment increases.
	 

	 
		“(10) Absence of Cost Justification Financial
		Statement. The Contractor’s failure to submit an annual Cost
		Justification Financial Statement by the deadline date as above expressed will
		result in the forfeiture of any increase later justified for the period from
		the service start date to the day the statement is received at OPT, unless the
		Director determines that reasonable circumstances exist to excuse the
		Contractor’s late submittal.
	 

	 
		“(11) Adjustments to Later Payments. Based on the
		Board’s audit of the Contractor’s annual Cost Justification Financial
		Statements and financial records, the BOE may make any necessary adjustments in
		any later payments that become due and owing to the Contractor to compensate
		for any excesses of payments over cost increases. Notwithstanding the
		foregoing, the BOE shall make no adjustment in payments or the rate(s) of
		payment due the Contractor and shall make no claim for overpayments to the
		Contractor, unless the BOE audit, upon which such adjustment or claim is based,
		shall have been completed and submitted to the Contractor within two (2) years
		after the date on which the Contractor shall have submitted to the Board the
		Cost Justification Financial Statement and final supporting documentation for
		such Cost Justification Financial Statement,13 which is the subject
		of such audit. The limitation upon payment adjustments expressed in the
		preceding sentence shall not apply to any payment adjustment(s) required by any
		applicable laws, rules and/or regulations as applied by governmental agencies,
		other than the Board, which may apply to this Contract.
	 

	 
		“(12) Refund of Overpayment. The Contractor
		agrees and warrants further to refund all additional monies due to the BOE
		within thirty (30) days of the Board’s final findings regarding any given
		Cost Justification Financial Statement (provided such final findings are
		completed and submitted to the Contractor not later than two years after the
		submission to the BOE of such Cost 
	 

	 
		______________
	 

	 
		13 If the Contractor shall amend
		or otherwise change the Cost Justification Financial Statement and any
		supporting documentation after having made an initial submittal to the BOE, the
		two year limitation period shall be tolled and shall start again with the date
		of the submittal of each such amendment or other change.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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				  ELEVENTH
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		Justification Statement), if the amount of a
		given Extension Year’s payment excess over allowable cost increase is
		greater than any payments due and owing for the balance of a given Extension
		Year. The limitation upon refunds expressed in the preceding sentence shall not
		apply to any refund(s) required by any applicable laws, rules and/or
		regulations as applied by governmental agencies, other than the Board, which
		may apply to this Contract.
	 

	 
		“(13) Unabsorbed Cost Carry-Forward
		Provision. For any extension year in which the Contractor
		shall not be able to justify the maximum allowable rate(s)
		increase(s) for any one or more of Extension Years 2005-06 to 2009-10, the
		Contractor shall be entitled to use the Unabsorbed Percentage Cost Increases,
		if any, as a supplemental device to achieve a greater allowable rate(s)
		increase(s). To be eligible to apply Unabsorbed Percentage Cost Increases, the
		Contractor must detail in writing the Total Allowable Costs from each set of
		two comparison years from which any Unabsorbed Percentage Cost Increases shall
		be derived as well as the total percentage of actual cost increase and the
		unabsorbed percentage of cost increase. When eligible and entitled hereunder,
		the Contractor may carry forward ‘below-the-line’ any previously
		Unabsorbed Percentage Cost Increases from any sets of comparison periods, as
		heretofore expressed at Paragraph 1(a)-(e) of ARTICLE V-A, 28(C) or 29(D) of
		the Contract, to supplement those cost increases that are used to justify
		augmentations of the daily rate(s) per vehicle for Extension Years 2005-06
		through 2009-10. The term ‘below-the-line’ means previously
		unabsorbed cost increases, which are carried forward, are deemed as allocated
		to the Extension Year(s) of accrual and not to the subsequent Extension Year(s)
		to which they are carried forward and applied both supplementally and
		‘below-the-line’ as prior cost increases that have not as yet been
		absorbed by the annual CPI increment.14 Once an item of previously
		Unabsorbed Percentage Cost Increases shall have been carried forward and
		applied ‘below-the-line’ to a given Extension Year, that item may not
		be used again in any later Extension Year.
	 

	 
		“(14) Inconsistencies. In the event
		of any apparent inconsistencies between any other provisions of the Contract
		and ARTICLE V-A, 28(C) and/or 29(D) hereof, the provisions of
		ARTICLE V-A, 28(C) and/or 29(D) shall prevail and govern in
		every case and for all intents and purposes.”
	 

	 
			
				
				  (C)
				

			 	
				
				  AMENDMENTS
				  TO
				  INSURANCE PROVISIONS.
				

			 

 

	 
		(1) ARTICLE (D) entitled,
		“Amendments to Insurance Provisions,” as expressed in the
		Supplemental Tenth Amendment of Contract for General Education Pupil
		Transportation Services is hereby 
	 

	 
		______________
	 

	 
		14 By way of example, from
		Extension Years 2004-05 to 2005-06 and from Extension Years 2005-06 to 2006-07,
		the Contractor’s costs increased by two percent (2%) and three percent
		(3%), respectively. From Extension Years 2004-05 to 2005-06 and from Extension
		Years 2005-06 to 2006-07, the CPI increased by one-and-one-half percent (1.5%)
		and two-and-one-half percent (2.5%), respectively. From Extension Years 2006-07
		to 2007-8, the CPI increased by four percent (4%), while the Contractor’s
		actual costs grew by only three percent (3%). Although the Contractor’s
		two discrete one-half percent (0.5%) cost increases above the allowable CPI
		caps accrued in Extension Years 2005-06 and 2006-07, respectively, each may be
		carried forward and applied below-the-line to supplement the Contractor’s
		cost growth from Extension Years 2006-07 to 2007-08, which was lower than the
		CPI.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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				  AGREEMENT
				

			 	
				
				   
				

			 	
				
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		incorporated into, and made part of, this
		Extension and Eleventh Amendment Agreement as if set forth herein in its
		entirety, and the said ARTICLE (D)
		is hereby amended effective as of July 1, 2005 for purposes of Extension Year
		2005-2006 through Extension Year 2009-2010 as follows:
	 

	 
		(a) The first paragraph and Note 7 of
		ARTICLE
		D, Paragraph (1)(E)(1)(a) are hereby amended to read as follows:
	 

	 
		“Contractor Payment of VALICA Program
		Premiums. In
		consideration of the Board’s supply of Primary Insurance, the contract
		compensation payable to the Contractor under this Contract shall be reduced for
		each twelve month period that the Primary Insurance shall be in effect
		(hereinafter expressed as ‘Primary Policy Year’)7, in an
		amount (hereinafter expressed as ‘Contract Reduction Amount’) equal
		to the following:
	 

	 
		DIV ALIGN="left">
	 

	 	
			 
				 
			 

		  	
			 
				“7
			 

		  	
			 
				The first Primary Policy Year shall be
				from March 31, 2003 until March 30, 2004. The second Primary Policy Year shall
				be from March 31, 2004 until June 30, 2005. The third Primary Policy Year shall
				be from July 1, 2005 until June 30, 2006. The fourth Primary Policy Year shall
				be from July 1, 2006 until June 30, 2007. The fifth Primary Policy Year shall
				be from July 1, 2007 until June 30, 2008. The sixth Primary Policy Year shall
				be from July 1, 2008 until June 30, 2009. The seventh Primary Policy Year shall
				be from July 1, 2009 until June 30, 2010. For the second Primary Policy Year
				which is for a 15 month period, the Base Premium, and the $2,000 Credit shall
				each be increased by twenty-five percent (25%).
			 

		  

	 
		(b)
		ARTICLE (D), Paragraph
		(1)(E)(1)(a)(2) is hereby amended to
		read as follows:
	 

	 
		“(2) Two Thousand Dollars ($2,000.00)
		(hereinafter expressed as “$2,000.00 Credit”), multiplied by the
		total number of Contractor Vehicles (excluding
		spare vehicles) assigned to the Contractor under the VALICA Program in a given
		Primary Policy Year.”
	 

	 
		(c) The first full paragraph of Paragraph (1)(E)(1)(e) of ARTICLE D is
		hereby amended to read as follows:
	 

	 
		“(e) Limitation on $2,000.00 Primary Insurance Cost
		Reduction. All else to the contrary
		notwithstanding, the BOE and the Contractor stipulate and agree that the
		Board’s obligation regarding the $2,000.00 Credit is limited to a
		reduction of Two Thousand Dollars ($2,000.00) per Contractor Vehicle
		(excluding spare vehicles) per Primary Policy Year (pro-rated in
		case a Primary Policy Year shall be more or less than twelve months) for the
		number of Contractor Vehicles (excluding
		spare vehicles) that shall have been assigned by the BOE to the Contractor for
		any Primary
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		Policy year. The $2,000.00 Credit per
		Primary Policy Year also shall be pro-rated for any additional Contractor
		Vehicles that shall be assigned to the Contractor after the beginning of each
		such Primary Policy Year. The Contractor stipulates and agrees that it and its
		successors and assigns shall make no claims for any $2,000.00 Credits that
		would increase the said BOE obligation to more than Two Thousand Dollars
		($2,000.00) per Contractor Vehicle (excluding
		spare vehicles) per Primary Policy Year. The Contractor stipulates and agrees
		that the BOE shall be entitled to recover at least the aggregate amount of the
		$2,000.00 Credits attributable to the Contractor from all tax related and
		non-tax related savings achieved under the VAFPA Program through June 30, 2004,
		as expressed elsewhere in this Contract.”
	 

	 
		(d) ARTICLE
		(D), Paragraph (1)(E)(l)(e)(1) entitled, “Increases and Decreases in the Number
		of Vehicles,” shall have no further application for all Extension Years
		starting as of July 1, 2005. ARTICLE
		 (D), Paragraph (1)(E)(1)(e)(2) is hereby amended to read as follows:
	 

	 
		“(2) Assignment of Contractor Vehicles. If the BOE shall approve any contract assignments
		affecting Contractor Vehicles (excluding
		spare vehicles), the contract assignee shall be afforded a $2,000.00 Credit per
		Contractor Vehicle (excluding
		spare vehicles). If the Contractor accepts any assignments of vehicles under
		this Contract, the Contractor stipulates and agrees that the Contract Reduction
		Amount charged to the Contractor for such assigned vehicles shall be based upon
		the Contract Reduction Amount per vehicle of the assignor. If the Contractor
		subsequently receives additional Vehicles under the assigned Contract, the
		Contract Reduction Amount applicable to the Additional Vehicles shall be based
		upon the Contract Reduction Amount of the Contractor and not that of the
		assignor. If an assignor’s premiums are lower than Two Thousand Dollars
		($2,000.00) per Contractor Vehicle, the assignee shall not be entitled to any
		credits for the difference as applied to spare and further additional vehicles
		as otherwise permitted under Paragraph
		(E)(1)(E)(1)(c), Note 8,
		supra.
	 

	 
		(d) ARTICLE
		(D), Paragraph (1)(E)(l)(c), Note
		8 is hereby amended to read as
		follows:
	 

	 
		“8  In instances where
		the $2,000.00 Credits shall exceed the Contractor’s Base Premium, the
		Contractor shall be entitled to a credit for any difference to be applied by
		the BOE against the Contract Reduction Amount otherwise payable by the
		Contractor for spare vehicles, provided,
		the preceding shall act only to lower the Contract Reduction Amount and shall
		not obligate the BOE to make any payments to the Contractor to any extent
		whatsoever.”
	 

	 
		 
	 

	 
			
				
				  (D)
				

			 	
				
				  EMPLOYEE PROTECTION
				  PROVISIONS.
				

			 

 

	 
		Paragraph (E) of the Extension and Ninth Amendment Agreement of
		Contract Serial Nos. 0065, 0075 and 8107, Paragraph (E) of
		the Extension and Fifth Amendment of Contract Serial No. 9888, and
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				  EXTENSION
				  AND
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		ARTICLE 45
		of Contract Serial No. 7263, as
		amended, are hereby amended to read as follows for the period of this Extension
		and Eleventh Amendment Agreement:
	 

	 
		“1. Priority in Hiring and Master Seniority
		Lists.
	 

	 
		“There shall be established two
		industry-wide Master Seniority Lists. One list shall be composed of all
		operators (drivers), mechanics, and dispatchers and the other list shall be
		composed of escorts (matrons-attendants) who were employed as of June 30, 2005,
		under a contract between their employers and the Board for the transportation
		of school children in the City of New York, who are furloughed or become
		unemployed as a result of loss of contract or any part thereof by their
		employers, or as the result of a reduction in service directed by the Board
		during the term of the contract, in accordance with their date of entry into
		the industry. All operators (drivers), mechanics, dispatchers and escorts
		(matrons-attendants) on the Master Seniority Lists who participated in the
		Division 1181 A.T.U.–New York Employees Pension Fund and Plan as of June
		30, 2000, and who do not exercise their option to withdraw from the Fund and
		Plan shall continue to participate in such Pension Plan. By not later than
		September 30th of each Extension Year, the Contractor shall supply
		the BOE with a Seniority List for all of the Contractor’s employees, which
		Seniority List the Contractor shall input into a Web-Based Application to be
		supplied by the BOE.
	 

	 
		“Any existing contractor or individual
		who conducted business as a sole proprietor, or as a member of a partnership or
		who held a controlling interest in a corporation that performed service
		pursuant to contract expiring in June, 2005 (“existing contractor”)
		shall give priority in employment on September, 2005 or thereafter on the basis
		of position on the Master Seniority List of any additional or replacement
		operators, mechanics and dispatchers beyond those performing service as of June
		30, 2005 consistent with the number of employees required by the specifications
		of the contract expiring June, 2005 for the number of vehicles providing
		service to the Board as of June 30, 2005 to individuals from the Master
		Seniority List until such list is exhausted.
	 

	 
		“Any new contractors, i.e., those who
		did not provide service pursuant to contract expiring June, 2005 (“new
		contractor”), shall give priority in employment in September, 2005 or
		thereafter on the basis of seniority to every operator (driver), mechanic and
		dispatcher performing service pursuant to such contract starting from the first
		employee from the Master Seniority List until such list is exhausted.
	 

	 
		“Should the Board determine to require
		the Contractor to provide escort service in addition to the operator, and in
		the event that all escorts (matrons-attendants) on the Master Seniority List,
		who were employed as of June 30, 2005, are not employed as escorts by
		contractors for the beginning of service in September of 2005, then said
		escorts shall be employed in order of their position on the Master Seniority
		List.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		“2. Compensation.
	 

	 
		“All operators (drivers), mechanics,
		dispatchers and escorts (matrons-attendants) on the industry-wide Master
		Seniority Lists shall be employed and paid on a full-time basis based upon the
		wage scale received from prior employer under pupil transportation contracts.
		
	 

	 
		“The Contractor shall compensate
		operators (drivers), mechanics and dispatchers and escorts (matrons-attendants)
		who appear on the Master Seniority Lists and who are employed pursuant to
		contracts to be awarded as follows for the term of the Contract:
	 

	 
		“(a) operators
		(drivers) and dispatchers at a daily rate of pay, including any COLA, for each
		day of service, not less than that paid pursuant to any applicable labor
		collective bargaining agreement.
	 

	 
		“(b) mechanics at
		a daily rate of pay, including any COLA, for each day of service, not less than
		that paid pursuant to any applicable labor collective bargaining
		agreement.
	 

	 
		“(c) escorts
		(matrons-attendants) at a daily rate of pay, including any COLA, for each day
		of service, not less than that paid pursuant to any applicable labor collective
		bargaining agreement.
	 

	 
		“Such operators (drivers) and escorts
		(matrons-attendants) shall be available for extended service, without
		additional compensation, which shall be defined as performance within the
		particular job category (i.e. drivers as drivers, and escorts
		(matrons-attendants) as escorts (matrons-attendants) ) within the eight (8)
		hour work day within the spread (8 within 10 hours) provided for in the
		collective bargaining agreement covering said employees, if any.
	 

	 
		“3. Welfare.
	 

	 
		“Contributions by the Contractor for
		providing welfare benefits to operators (drivers), mechanics, dispatchers and
		escorts (matrons-attendants), in the event the Contractor employs escorts, who
		appear on the Master Seniority List shall be no less than $587.65 through
		December 31, 2005 and $607.65 for the period of January 1, 2006 through June
		30, 2006 per employee per month on a twelve month basis during each year of the
		Contract.
	 

	 
		“4. Pensions.
	 

	 
		“The Contractor shall sign an agreement
		with Division 1181 A.T.U.–New York Employees Pension Fund and Plan to
		participate in such plan on behalf of all operators (drivers), mechanics,
		dispatchers and escorts (matrons-attendants), in the event the Contractor
		employs escorts, who appear on the Master Seniority Lists and who participated
		in the Fund and Plan as of June 30, 2005. This requirement shall not be
		interpreted to require any existing contractor or new contractor to enter into
		a collective bargaining agreement with the union, nor shall it prohibit any new
		contractor or ex-
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		isting contractor from entering into a
		collective bargaining agreement with the union. The Contractor shall file a
		copy of the executed agreement with the Trustees of the Fund and Plan to
		participate in said Fund and Plan and with the Director before the start of any
		school bus service under this Contract.
	 

	 
		“The Contractor shall contribute $63.40
		per week per operator (driver), mechanic and dispatcher on the Master Seniority
		List, and participating in the Plan and Fund as of June 30, 2005, for forty
		weeks each year for the term of the Contract, or such greater amount as may be
		required, based on contributions by contractors on behalf of the majority of
		employees participating in the Fund and Plan pursuant to a collective
		bargaining agreement with Local 1181–1061. The Contractor shall withhold
		$33.00 a week from each operator, mechanic and dispatcher participating in said
		Fund and Plan for forty weeks each year for the term of the contract, or such
		greater amount as may be required based on contributions of a majority of the
		operators (drivers), mechanics or dispatchers contributing to the Fund and
		Plan.
	 

	 
		“Such new contractors and existing
		contractors who provide escort service, shall contribute $59.40 per week per
		escort (matron-attendant) for forty weeks each year for the term of the
		contract, or such greater amount as may be required based on contributions by
		contractors on behalf of the majority of employees participating in the Fund
		and Plan pursuant to a collective bargaining agreement with Local
		1181–1061. The Contractor shall withhold $23.00 per week from each escort,
		(matron-attendant) participating in said Fund and Plan and Fund for forty weeks
		each year for the term of the Contract, or such greater amount as may be
		required based on contributions of the majority of the escorts contributing to
		the Fund and Plan. 
	 

	 
		“In connection with employees who are
		on the Master Seniority List and who do not participate in the Local
		1181–1061 Fund and Plan, they shall not be required to participate in the
		Plan but shall participate in the collective bargaining agreement, if any, of
		their employer. 
	 

	 
		“The Contractor shall pay all such
		amounts to the Fund and Plan within seven days after the end of each payroll
		period.
	 

	 
		“5. Enforcement.
	 

	 
		“In addition to any other remedies
		provided in the contract between the Board and the contractor, such as default
		and/or termination, if the contractor is found to be in violation of the
		foregoing Employee Protection Provisions regarding the payment of wages,
		welfare benefit contributions, pension contributions, or other aspects of
		compensation or benefits, then the Director of the Office of Pupil
		Transportation, within thirty (30) days of written notice, shall withhold the
		appropriate amounts from any payments due to the contractor and pay them
		directly to the applicable union for the benefit of the employees affected, to
		the Division 1181 A.T.U.–New York Employees Pension Fund or other
		applicable union pension fund for the benefit of the employees affected or to
		the appropriate Welfare Fund for the benefit of the employees affected. If the
		affected employees are not
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		affiliated with any union, then the Board
		shall investigate on their behalf allegations of employee protection provision
		violations regarding the payment of wages, welfare benefit or health insurance
		contributions, pension or similar savings plan contributions, or other aspects
		of compensation or benefits. Upon a finding of any such violation(s), the OPT
		Director shall withhold the appropriate amounts from any payments due to the
		Contractor and pay them directly to the employees or to such health insurance
		companies or other institutions as appropriate.
	 

	 
		“In the event any new contractor or
		existing contractor willfully fails to comply, the Board of Education shall act
		to cancel such contractor’s contract, provided, however, that the Board
		shall not be required to act so as to cause a disruption of service.
	 

	 
		“6. Contractors
		providing a total of five vehicles or less pursuant to all contracts with the
		Board for the transportation of pupils shall not be subject to the foregoing
		provisions with respect to operators (drivers), mechanics and
		dispatchers.
	 

	 
		“Escorts (matron-attendants) shall not
		be included in the exclusion in this paragraph six (6).
	 

	 
		“7. For the
		purposes of this section, corporate bidders who are subject to common control
		as determined by the Board based upon analysis of (a) ownership of
		the corporation’s assets, (b) coincidence
		of corporate officers and directors, and (c) such other
		factors as the Board determines to be relevant, are deemed to be one
		bidder.
	 

	 
		“8. The Board may
		in its sole and unfettered discretion change any date which determines employee
		protected status, employer status or any other status, which is contained in
		any employee protection provisions of the Contract. The Master Seniority Lists
		will be updated to June 30, 2005 as permitted in accordance with pre-existing
		collective bargaining agreements executed prior to the date of execution of
		this Contract. Furthermore, the rates quoted herein may not be reflective of
		current labor rates in effect. The Contractor should pay special attention to
		the fact that many employees on the Master Seniority Lists have been in the
		industry for many years and therefore may be entitled to substantial wages,
		pension and welfare benefits and wage accruals.
	 

	 
		“The date for inclusion on the Master
		Seniority List is hereby updated to the last school day in June, 2005 as
		permitted in accordance with pre-existing collective bargaining agreement
		executed prior to the date of this Extension Agreement and Amendment
		Agreement.”
	 

	 
		 
	 

	 
			
				
				  (E)
				

			 	
				
				  VINTAGE AND AIR-CONDITIONING
				  REQUIREMENTS.
				

			 

 

	 
		(1) Age and Condition of Vehicles. The vehicles
		affected by this provision include all originally contracted vehicles,
		(i.e., “contract vehicles”) and all additional and
		spare vehicles. Except for the age of vehicles, nothing contained in this
		Paragraph (1) and/or any of its subparagraphs shall be deemed or
		construed in any manner or to any extent whatsoever to act and/or operate in
		abroga-
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		tion or derogation of any other individual
		or cumulative provisions of the Contract, as heretofore amended and
		extended.
	 

	 
		(a) The Contractor shall furnish service, maintenance and
		repairs of all vehicles used in the performance of this contract in compliance
		with (i) all manufacturer’s guidelines for maintenance,
		service and repairs, (ii) all Federal
		and State of New York statutes, regulations, rules, guidelines and policies
		applicable to service, maintenance and repair of school bus vehicles,
		(iii) all New York State Department of Transportation and New
		York State Department of Motor Vehicles policies, rules and regulations,
		(iv) Federal and State regulations applicable to maintenance
		and repair of school bus vehicles, and (v) all New York
		State Education Department, policies, rules and regulations applicable to
		service, maintenance and repair of school bus vehicles. The Contractor shall
		maintain and, upon demand, shall present to the Director contemporaneously
		kept, accurate, complete, orderly and written records of the school bus vehicle
		maintenance and repair activities performed in accordance with the
		foregoing.
	 

	 
		(b) The Director shall have the right to disapprove any
		vehicles under this Contract and to require the Contractor to furnish
		acceptable replacement vehicles in the event that the Director determines in
		his/her judgment any such vehicle(s) to be unfit for service.
	 

	 
		(c) During the life of this Extension Agreement Contractors
		who provide mini wagons and/or ramp Wagons (collectively “Small School
		Buses”) and Contractors who provide a combination of (x) Small School
		Buses; and (y) standard school buses, dual-door buses and or hydraulic lift
		buses (collectively, “Large School Buses”) must comply with the
		following:
	 

	 
		(i) Except as provided in subparagraph (e) below, by June
		30, 2005, no more than 10% of the total number of vehicles operated by a
		Contractor pursuant to this Contract may be manufactured prior to 1987;
	 

	 
		(ii) Except as provided in subparagraph (e) below, by June
		30, 2006, no more than 25% of the total number of vehicles operated by a
		Contractor pursuant to this Contract may be manufactured prior to 1990 and no
		such vehicles may be manufactured prior to 1987;
	 

	 
		(iii) By June 30, 2007, no more than 20% of the total number
		of vehicles operated by a Contractor pursuant to this Contract may be
		manufactured prior to 1991 and no such vehicles may be manufactured prior to
		1988;
	 

	 
		(iv) By June 30, 2008, no more than 10% of the total number
		of vehicles operated by a Contractor pursuant to this Contract may be
		manufactured prior to 1992 and no such vehicles may be manufactured prior to
		1989;
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		(v) By June 30, 2009, no vehicles operated by a Contractor
		pursuant to this contract may be manufactured before 1990; and,
	 

	 
		(vi) In the event of a further extension of this contract
		beyond June 30, 2010, by June 30, 2010 no more than 5% of the total number of
		vehicles operated by a Contractor pursuant to this contract may be manufactured
		prior to 1993 and no such vehicles may be manufactured prior to 1991.
	 

	 
		(d) During the term of this Extension Agreement, Contractors
		who operate a combination of Large School Buses and Small School Buses, and
		Contractors who operate only Large School Buses must comply with the following
		with regard to the age of Large School Buses as a separate class of
		vehicles:
	 

	 
		(i) Except as provided in subparagraph (e), infra,
		by June 30, 2005, no more than 10% of
		the number of Large School Buses operated by a Contractor pursuant to this
		Contract may be manufactured prior to 1987;
	 

	 
		(ii) Except as provided in subparagraph (e),
		infra, by June 30, 2006, no more than
		30% of the number of Large School Buses operated by a Contractor pursuant to
		this Contract may be manufactured prior to 1990 and no such vehicles may be
		manufactured prior to 1987;
	 

	 
		(iii) By June 30, 2007, no more than 25% of the number of
		Large School Buses operated by a Contractor pursuant to this Contract may be
		manufactured prior to 1991 and no such vehicles may be manufactured prior to
		1988;
	 

	 
		(iv) By June 30, 2008, no more than 20% of the number of
		Large School Buses operated by a Contractor pursuant to this Contract may be
		manufactured prior to 1992 and no such vehicles may be manufactured prior to
		1989;
	 

	 
		(v) By June 30, 2009, no more than 15% of the number of
		Large School Buses operated by a Contractor pursuant to this Contract may be
		manufactured prior to 1992 and no such vehicles may be manufactured prior to
		1990; and,
	 

	 
		(vi) In the event of a further extension of this Contract
		beyond June 30, 2010, by June 30, 2010, no more than 10% of the number of Large
		School Buses operated by a Contractor pursuant to this Contract may be
		manufactured prior to 1993 and no such vehicles may be manufactured prior to
		1991.
	 

	 
		(e) Notwithstanding the limitations set forth in
		subparagraph (c)(i) and (ii) and
		subparagraph (d)(i) and (ii),
		supra, through June 29, 2006, the Contractor may continue to
		use the vehicles that the Contractor owns and/or leases and are in service as
		of June 30, 2005 (“Exist-
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		ing Vehicles”), provided,
		the Director shall have the right to disapprove any such vehicles and to
		require the Contractor to furnish an acceptable replacement vehicle in the
		event that the Director shall determine in his/her judgment any such vehicle(s)
		to be unfit for service. Vehicles transferred among contractors that are
		subject to common control shall be considered Existing Vehicles under the
		preceding sentence.
	 

	 
		(f) Any vehicles that shall be first placed into service
		during the term of this Extension Agreement shall be not more than five (5)
		years old at the time such vehicle is placed into service. The continued use of
		any given contractor’s vehicles that are in service in accordance with the
		terms hereof shall be authorized for use pursuant to the terms of this
		provision by a contract assignee, upon assignment of a contract with approval
		of the Board.
	 

	 
		(g) Vehicles ordered prior to June 30 and delivered prior
		to the end of the following September of an Extension Year shall qualify for
		purposes of determining the percentages set forth in subparagraphs (c) and (d),
		supra.
	 

	 
		(h) In the event of an assignment of a Contract or an
		assignment of a separate item of a Contract, which shall have been approved by
		the BOE, vehicles transferred to the assignee by the assignor, which were in
		compliance with the assignor’s vintage requirements, may be placed in
		service by the assignee, notwithstanding that such vehicles might otherwise
		result in noncompliance with the percentage limitations of subparagraph (c)
		or (d), supra. The
		preceding sentence to the contrary notwithstanding, the assignee Contractor
		shall have twelve (12) months from the date of BOE approval of an assignment to
		bring all non-complying vehicles into full compliance with the percentage
		limitations of subparagraph
		(c) or (d),
		supra.
	 

	 
		(i) For purposes of subparagraphs (c) and (d),
		supra, a manufacture date/placed in service date shall
		replace the manufacture date to allow a manufacture date one (1) year earlier
		than current allowance. For explanatory purposes, current BOE rules require
		that a new vehicle is one with a model year of “x” and a manufacture
		year of “x – 1.” During the term of the Extension and Thirteenth
		Amendment Agreement, new vehicle shall be a model year of “x -1” and
		a manufacture date of “x – 2.”
	 

	 
		(2) List of Vehicles. The Contractor
		must provide a list of all vehicles, including spare and maintenance vehicles,
		to be operated during each Extension year. Each list must show for every
		vehicle the year, make, type, seating capacity, registration number, bus
		number, license plate number, owner, lessee (if applicable), and the expiration
		date of the New York State Department of Transportation approval sticker. The
		information required under this paragraph must be provided to a Web-Based
		Application, as supplied and updated by the BOE, and the Contractor must supply
		a copy of the title or certificate of registration for each listed vehicle.
		Whenever any changes occur in the list of vehicles as stated on the Web-Based
		Application, the Contractor must update the list
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		within two (2) BOE Business Days. In
		addition, the Contractor must provide at the same time written assurance that
		all vehicles are equipped with two-way radios.
	 

	 
		(3) Air Conditioning/Climate Control
		Systems. (a) Each vehicle that is required to have an Air
		Conditioning/Climate Control System must be equipped with an air conditioning
		system with sufficient power-train, electrical, and engine cooling support
		systems to maintain comfortable conditions throughout the entire interior of
		the vehicle during any warm weather periods at ambient temperatures not higher
		nor lower than necessary to meet the medical and comfort needs of each
		passenger.
	 

	 
		(i) By June 30, 2006, fifty percent (50%) of all Small
		School Buses operated by the Contractor pursuant to this Contract will be
		required to be equipped with air conditioning/climate control systems.
	 

	 
		(ii) By June 30, 2007, sixty percent (60%) of all Small
		School Buses operated by the Contractor pursuant to this Contract will be
		required to be equipped with air conditioning/climate control systems.
	 

	 
		(iii) By June 30, 2008, seventy percent (70%) of all Small
		School Buses operated by the Contractor pursuant to this Contract will be
		required to be equipped with air conditioning/climate control systems.
	 

	 
		(iv) By June 30, 2009, eighty percent (80%) of all Small
		School Buses operated by the Contractor pursuant to this Contract will be
		required to be equipped with air conditioning/climate control systems.
	 

	 
		(v) In the event this Contract shall be further extended
		beyond June 30, 2010, by June 30, 2010, one hundred percent (100%) of all Small
		School Buses operated by the Contractor pursuant to this Contract will be
		required to be equipped with air conditioning/climate control systems.
	 

	 
		(b) Each Small School Bus which the Contractor shall
		acquire during the term of this Extension Agreement in order to comply with the
		age requirements set forth in Section
		(1) hereof, shall be equipped with air
		conditioning/climate control systems. With the exception of the vehicles
		referenced in the preceding sentence, the Board shall pay a one-time equipment
		fee equal to the lesser of $3,000 or 50% of the Contractors cost to air
		condition the number of Small School Buses (i) which the
		Contractor is required to maintain for any Extension Year in accordance with
		the percentages set forth in subparagraph (a)
		of this Section (3); and/or, (ii) which the
		Contractor is required to air condition in order to comply with applicable
		law.15 By way of example, if in June
	 

	 
		______________
	 

	 
		15 The Contractor may either
		retrofit existing vehicles with air-conditioning units or purchase new vehicles
		with air-conditioning units installed by the vehicle manufacturer or
		dealer.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		 
	 

	 
			
				
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		2006 (at which time 50% of all Small School
		Buses which make up a Contractor’s fleet are required to be air
		conditioned and no more than 25% of such fleet can be manufactured prior to
		1990), a Contractor’s fleet consisted of twenty five 1989 and seventy five
		1995 non-air-conditioned Small School Buses, the Contractor would be required
		to (i) replace all of the twenty five 1989 vehicles with newer
		Small Buses with air conditioning at its own cost to satisfy the vintage
		requirements; and, (ii) replace or retrofit twenty five of the 1995 vehicles
		with air conditioning (to meet the 50% AC requirement) for which the Contractor
		would be entitled to an equipment fee equal to the lesser of $3,000 or one-half
		of the cost of such air conditioning installation per bus.
	 

	 
		(c) Subject to prior approval by the Board, Contractors
		shall receive a one-time equipment fee for each Large School Bus equipped with
		air-conditioning/climate control systems, which the Contractor shall place into
		service during the term of this Extension Agreement. Such equipment fee shall
		equal the lesser of $4,000 or one-half of the cost of the Contractor’s
		cost for such air–conditioning system. The Board’s prior approval
		shall not be withheld in instances where the Contractor is required by law to
		provide air conditioned Large School Buses in order to transport New York City
		school children.
	 

	 
		(d) The Board shall pay the cost of the air-conditioning
		equipment fee directly to the Contractor.
	 

	 
		(e) Each air-conditioned vehicle, for which the Board shall
		pay an equipment fee in accordance with this Section (3),
		shall be made available for service to the Board on a priority basis.
	 

	 
		(f) If the Contractor shall accelerate the timing for the
		purchase of air-conditioned vehicles beyond the timing needed to comply with
		the vintage requirements under Paragraph (E)(1), supra, the
		Contractor shall be entitled to the air conditioning equipment fee for such air
		conditioned vehicles for which the purchase or retrofit thereof shall have been
		accelerated, provided, that the Contractor shall have obtained advance
		approval for such acceleration from the Director. In cases where the Contractor
		already shall have met the minimum requirement for the number and/or percentage
		of vehicles with air-conditioning at the outset of this Extension and Eleventh
		Amendment Agreement, however, the Contractor shall not be entitled to any
		reimbursement of any past costs and expenses for the installation, upgrade,
		retro-fitting, repair and/or maintenance of air-conditioning equipment.
	 

	 
		 
	 

	 
			
				
				  (F)
				

			 	
				
				  MISCELLANEOUS
				  VEHICLE,
				  OPERATIONAL AND
				  FINANCIAL AMENDMENTS.
				

			 

 

	 
		(1) Computer Systems. The Contractor
		shall be required to maintain a computer system sufficient to run applications
		developed by the BOE Office of Pupil Transportation. Currently, the minimum
		computer system required is as follows: Pentium IV Computer, 512 megabytes of
		RAM, 50 gigabyte hard disk, Windows XP/2000, and Broad-Band Connection. The
		Contractor shall also maintain the following: (i) online route
		establishment, deletion and modification capability; (ii) high speed
		internet connectivity for electronic routing; and, (iii) a website
		which shall include updated (on a basis as specified by the Director) pick up
		and drop off times for the routes serviced by
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		the Contractor. During the life of this
		Extension Agreement, the Contractor will be required to update the computer
		system as required by the Director.
	 

	 
		(2) New Laws, Rules, Regulations, Bylaws or School Bus
		Safety Features.
		If, starting July 1, 2005, any State or
		local laws, rules or regulations are enacted, updated, revised, amended or
		otherwise changed in any manner that shall require the Contractor to undertake
		any new or revised procedures affecting school bus personnel or operations
		(i.e., school bus personnel drug or alcohol testing, driver
		licensing or training procedures, etc.) or the
		introduction onto vehicles of new safety features or any other equipment
		(e.g., increased seat-back padding, back-up beepers, stop
		arms, safety sensors, seat belts, etc.), the
		Contractor must comply promptly, provided,
		the BOE shall pay one-half (1⁄2) of the cost of compliance with any such
		new or revised driver and/or operational procedures and/or for the purchase and
		installation of new safety features and/or other equipment in compliance with
		any such legal and/or regulatory changes. If, starting July 1, 2005, any
		Federal laws, rules and/or regulations are enacted, updated, revised, amended
		or otherwise changed in any manner that shall require the Contractor to
		undertake any new or revised procedures affecting school bus personnel or
		operations (i.e., school bus personnel drug or alcohol testing, driver
		licensing or training procedures, etc.) or the
		introduction onto vehicles of new safety features or any other equipment
		(e.g., increased seat-back padding, back-up beepers, stop
		arms, safety sensors, seat belts, etc.), the
		Contractor must comply promptly, and the BOE shall not be liable to pay any
		additional compensation to the Contractor for such compliance.
	 

	 
		(3) Customer Liaison. In each garage
		maintained to provide services under this Contract the Contractor shall employ
		personnel dedicated to customer telephone response at the rate of one customer
		liaison for every 100 buses (to a maximum of three customer liaisons per
		garage) except during the first three weeks of school opening when the
		ratio shall be one liaison per fifty buses.
	 

	 
		(4) Replacement Buses. Replacement
		buses must be dispatched immediately following a determination that more than
		thirty minutes will be required for a repair truck to reach a breakdown
		site.
	 

	 
		(5) Safety Kit. Each bus must
		contain a safety kit including fire blanket, seat belt, cutter, flashlight and
		liquid clean up kit.
	 

	 
		(6) Special Training. Drivers will
		be made available for not less than two (2) days each BOE School Year for
		specialized training, provided,
		that the cost of overtime or additional labor costs incurred as a result
		thereof, if any, will be paid by the BOE to the Contractor.
	 

	 
		(7) Geographic Positioning Systems. All buses will
		be equipped with a geographic positioning system and back up cellular emergency
		communications, the cost of which, including monthly service and maintenance
		fees shall be purchased and paid for by the BOE.
	 

	 
		(8) Diesel Emission Filters. Commencing
		June 30, 2006 and during the remaining term of this Extension and Eleventh
		Amendment Agreement, all Large School Buses (and any other buses 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		which are required by law to be equipped
		with diesel emission filters) shall be equipped with diesel emission filters
		that shall satisfy all regulatory and legal requirements, the cost of which
		filters and replacement filters shall be paid by the BOE. The preceding
		sentence to the contrary notwithstanding, the Contractor shall be responsible
		to replace at it sole cost and expense any and all emissions filters that shall
		need to be replaced during the term of this Extension and Eleventh Amendment
		Agreement due to any act(s) of commission and/or omission by the Contractor
		that shall cause and/or permit the manufacturer’s warranty to be voided or
		otherwise terminated.
	 

	 
		(9) Ramp Wagons. Ramp Wagons
		which under current Department of Transportation regulations can only
		accommodate three (3) wheelchair passengers, shall continue to qualify as Ramp
		Wagons under the specifications of this Contract, provided the Board shall have
		the right to designate certain routes for four wheelchair passengers Ramp
		Wagons on an as needed basis and to offer such designated routes in according
		to the Pick Order, first to those Contractors with Ramp Wagons having capacity
		for four wheelchairs and then to those Contractors with Ramp Wagons having
		capacity for three wheelchairs. Contractors with four wheelchair capacity
		vehicles shall not be required to accept any such designated routes.
	 

	 
		(10) Sales, Excise and Use Taxes. The Board and
		the Contractor hereby stipulate and agree that the following amendments to the
		Contract shall take effect only if an when (i.e., no retroactive
		application) the BOE shall obtain approval for the said provisions about sales,
		excise, compensating use and/or other taxes from the New York State Department
		of Taxation & Finance, the New York State Office of Attorney General,
		and/or a judicial and/or administrative tribunal with applicable jurisdiction.
		If and to the extent that the New York State Department of Taxation &
		Finance, the New York State Office of Attorney General, and/or a judicial
		and/or administrative tribunal with applicable jurisdiction shall require the
		following provisions to be revised to conform to applicable laws, rules and
		regulations, the Board and the Contractor hereby stipulate and agree that, upon
		the issuance of a ruling making such a revision requirement, the following
		provisions in this Paragraph (H)(10) shall be deemed so revised automatically
		and without the need for any further action by the Board and/or the Contractor.
		ARTICLE
		(G)(6) of the Extension and Ninth
		Amendment of Contract entitled, “Sales, Excise and Use Taxes,” is
		hereby amended to read as follows:
	 

	 
		“6.1.
		ELIMINATION OF FEDERAL, STATE AND LOCAL TAXES.
	 

	 
		“The BOE represents that it is a
		municipal corporation and school district as defined in the Education Law and
		the General Construction Law of the State of New York, and as such is exempt
		from the payment of Federal, State or local sales, excise, compensating use,
		gross receipts and other applicable taxes, as provided under the U.S. Internal
		Revenue Code and the Tax Law of the State of New York. The Contractor shall use
		commercially reasonable efforts to comply with the provisions set forth herein
		for the elimination of payments of such taxes for otherwise taxable goods,
		supplies, equipment, services, etc., that the
		Contrac-
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		tor shall purchase in the provision of the
		services under this Contract for purposes of resale to the BOE, and the
		Contractor shall pass along the benefits of related savings to the BOE.
	 

	 
		“6.2.
		CONTRACTOR AS A PURCHASING
		AGENT.
	 

	 
		“6.2.1. The BOE hereby appoints, designates and approves the
		Contractor to be and to act as the Board’s official purchasing agent for
		purposes of this Contract, to purchase or otherwise lawfully acquire third
		party services, third party goods, etc., that the
		Contractor shall reasonably and ordinarily need for purposes of resale to the
		BOE and otherwise to furnish the services under this Contract. The Contractor
		hereby accepts the BOE appointment to be and to act as the Board’s
		official purchasing agent as set forth in the preceding sentence. This agency
		appointment is limited strictly to the purposes of the Contractor’s
		provision of third party services, third party goods, etc., under this
		Contract and for no other purposes. In furtherance thereof, the BOE shall
		furnish to the Contractor an agency appointment letter on official NYCDOE
		letterhead stationery (hereinafter expressed as “Purchasing Agency
		Letter”) that the Contractor shall utilize in all of its purchases or
		other forms of lawful acquisition from the Contractor’s suppliers,
		sellers, subcontractors or other sources.
	 

	 
		“6.2.2. The Contractor shall present a copy of the Purchasing
		Agency Letter and such other necessary documentation, as provided by the BOE,
		to each supplier, seller, subcontractor or other source from or with whom the
		Contractor purchases or otherwise lawfully acquires consumable goods,
		commodities, materials, supplies, hardware, software, services, etc., for
		purposes of resale to the BOE in performing this Contract. For each such
		transaction, the Contractor shall use commercially reasonable efforts to obtain
		full exemptions from all applicable Federal, State and local sales, excise,
		compensating use, gross receipts and other applicable taxes. This agency
		appointment and tax exemption does not apply to the
		purchase or other acquisition of durable goods and equipment such as, but not
		limited to, school buses, maintenance vehicles, automobiles, durable equipment,
		durable tools, capital fixtures, etc., that are
		not for purposes of resale to the BOE or shall otherwise not be consumed in the
		performance of school bus services and other services under this
		Contract.
	 

	 
		“6.2.3. To the extent legally possible, the Contractor’s
		invoices to the BOE for services purchased from the Contractor shall not
		include any sales, excise, compensating use, gross receipts and/or other
		applicable taxes. The Contractor shall use commercially reasonable efforts to
		cooperate with the BOE and with any third party to ensure that no sales,
		excise, compensating use, gross receipts and/or other applicable taxes shall be
		payable by the Contractor or by the BOE with respect to third party goods and
		third party services that are purchased from third parties by the Contractor on
		behalf of the BOE.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		“6.2.4. The Contractor’s agreements with, and purchase
		orders to, any third party manufacturers, sellers, suppliers and/or service
		providers as well as all subcontractors in connection with the services
		performed under this Contract shall specify that the Contractor is a purchasing
		agent for the BOE. All checks that the Contractor issues for payment to third
		party manufacturers, sellers, suppliers and/or service providers as well as all
		subcontractors in connection with the services delivered and performed
		hereunder shall specify that the Contractor is a purchasing agent for the
		BOE.
	 

	 
		“6.2.5. In the event that any subcontractors or
		subcontractor’s employees shall make any purchases or other forms of
		lawful acquisition on the Contractor’s behalf pursuant to this Contract
		for purposes of resale to the BOE, the Contractor shall require such
		subcontractors or subcontractor employees, as the case may be, to use all
		commercially reasonable efforts to seek and obtain the appropriate sales,
		excise, use and other tax exemptions on the Board’s behalf. In furtherance
		thereof, the BOE shall furnish to the Contractor, upon written request, a
		letter on official NYCDOE letterhead stationery of the purchasing agency
		appointment of each such subcontractor or subcontractor’s employee that
		the said person or entity shall utilize in all of his/her/its purchases or
		other forms of lawful acquisition from any affected suppliers, sellers, and
		other sources.
	 

	 
		“6.2.6. If the Contractor needs any assistance, advice or
		modification(s) regarding its agency appointment letter(s), the Contractor
		shall provide written notice of such request to Michael P. Coneys, Esq.,
		Attorney (or his successor), New York City Department of Education, Office of
		Legal Services, The Tweed Courthouse, 52 Chambers Street, Room 308, New York,
		NY 10007-1222; telephone: (212) 374-3442; fax (212) 374-5596; e-mail address at
		mconeys@nycboe.net.”
	 

	 
		 
	 

	 
			
				
				  (G)
				

			 	
				
				  GENERAL MISCELLANEOUS
				  AMENDMENTS.
				

			 

 

	 
		All else to the contrary notwithstanding,
		the Contract is hereby amended as follows:
	 

	 
		(1) Changes Affecting Contractor. Paragraph (I)(2) of the Extension and Ninth Amendment Agreement is
		amended to read in its entirety as follows:
	 

	 
		“(2) Changes Affecting the Contractor. The Contractor
		shall provide written notice to the BOE on forms prescribed by the Director of
		each change affecting the following: partners, sole proprietors, management
		control, Chief Executive Officer, Chief Financial Officer, Chief Operating
		Officer, or the organization of ownership of the contractor, i.e., the
		corporation, partnership or sole proprietorship. Changes in the Contractor
		include, but are not limited to, the following: corporate or partner voting
		power; sale, transfer or other alienation of corporate, partnership or sole
		proprietorship assets; sale or transfer of corporate stock or part-
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		nership interest over five percent (5%); or,
		any other action that may affect BOE interests. Effective as of the 2005-06
		Extension Year, without the prior approval of the Director, which approval
		shall not be unreasonably withheld, (i) no
		Contractor shall change its chief executive officer (with the exception of a
		person who has held an executive position with a Board school bus
		transportation Contractor for at least five years), and (ii) no
		Contractor shall be subject to a change of control (with the exception of a
		transfer of ownership interests among family members).”
	 

	 
		(2) Unlawful or Unenforceable Provisions
		Void. Whereupon this Extension and Amendment Agreement shall
		be found to contain any unlawful or unenforceable provision(s), such
		provision(s) shall be deemed of no effect and will, upon application of either
		party, be stricken from this document without thereafter affecting the binding
		force of the remainder of this Extension and Eleventh Amendment
		Agreement.
	 

	 
		(3) Approval and Execution. This Extension
		and Amendment Agreement will not become binding or effective upon the Board of
		Education until the following series of events will have transpired:
		(a) approval as to legal sufficiency by the BOE Office of
		Legal Services; (b) approval of a Request for Authorization (herein
		expressed as “RA”) by the Chancellor; (c) execution on
		behalf of the Board of Education by the Chancellor or his/her designee;
		(d) approval by the New York State Commissioner of
		Education; (e) initial registration with Comptroller and
		re-registration with the Comptroller each year thereafter; and, (f) initial
		approval and subsequent annual re-approval by the New York State Financial
		Control Board pursuant to the New York State Emergency Act for the City of New
		York, as the rules and regulations of said Board so require.
	 

	 
		(4) Implementation of the State Education
		Law. This Extension and Eleventh Amendment Agreement is
		intended to implement the provisions of Education Law
		§305(14) and the attendant regulations of the State Commissioner of
		Education. Whereupon there shall exist any inconsistency between the BOE and
		the SED concerning this statutory provision, the attendant regulations of the
		Commissioner of Education and/or any formula(e) for reimbursement of funds,
		this Extension and Amendment Agreement shall be deemed amended automatically to
		conform to the interpretation of the SED but only for the protection of BOE
		interests and only at the Board’s option.
	 

	 
		(5) Comptroller. The
		Comptroller shall endorse hereon during the term of this Contract his/her
		certificates that there are appropriations or funds applicable thereto
		sufficient to pay the estimated expense to execute and operate this Contract
		during the respective fiscal periods.
	 

	 
		(6) Construction. As used
		herein, the singular shall include the plural and vice versa.
		As used herein, all masculine, feminine
		and neuter pronouns and other gender descriptions shall be deemed synonymous
		and interchangeable.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		(7) Vacillation in the Number of Contract and/or Additional
		Vehicles during Extension Periods. Paragraph C of
		Article XIII entitled, “INCREASE OR DECREASE IN THE NUMBER OF
		VEHICLES,” is henceforth amended as follows:
	 

	 
		“C. Increases and/or Decreases in the Number of Vehicles
		during Extension Periods. (i) The Board
		and the Contractor do hereby stipulate and agree that the number of vehicles
		required to serve pupil transportation needs may change often during each
		school year due to changes in pupil population, default or voluntary surrender
		of a Contract or changes in policy or directives adopted by the BOE, the City
		of New York, the State Education Department and/or Financial Control Board,
		over the term of an Extension Agreement. This provision does not apply to the
		summer months when vehicles may be decreased as much as necessary. For Summer
		School Transportation services vehicles will be offered by item beginning with
		the contractor that quoted the lowest daily rate per vehicle under Contract
		Serial Nos. 4515, 4516, 4894, 4952 and 7164. If additional vehicles are then
		needed vehicles will be offered by item beginning with the contractor who
		quoted the lowest daily rate per vehicle under Contract Serial Nos. 0065, 0075,
		7263, 8107 and 9888.
	 

	 
		“(ii) If the Director eliminates any
		vehicle(s) from the number of vehicles awarded to the Contractor (whether
		originally awarded at the inception of the Contract or awarded as additional
		vehicles thereafter) and later offers again a vehicle(s) of the same type(s)
		and geographical service area(s) due to any resumed need, the Contractor from
		whom such vehicles have been previously deleted shall be entitled to
		restoration up to and including the number of vehicles of the same type(s) and
		geographical service area(s) previously deleted. In the event that additional
		vehicles (i.e., vehicles added after the inception of the Contract)
		have been deleted from more than one Contractor in a specific item, the
		Contractor lowest in the Pick Order (as hereinafter defined) shall first be
		offered restoration of such deleted vehicles. 
	 

	 
		“(iii) With the exception of the award
		of vehicles in accordance with subparagraph (ii) above, the Director shall
		offer any ‘additional’ vehicle(s) to contractors in the relevant
		contractual item as determined by the order of contractors established as of
		August 24, 2004 (the “Pick Order”), pursuant to the procedures
		specified above in Paragraph B. 
	 

	 
		“(iv) Additional vehicles accepted by
		Contractors pursuant to a change order issued by the Board will continue in
		service for the duration of the Contract (subject to the right of the Board to
		delete vehicles in accordance with this Section C), and Contractors shall have
		no right to terminate services for such additional vehicles after the same have
		been accepted by the Contractor.
	 

	 
		“(v) The Board shall promptly advise
		all contractors of all route deletions and additions made by the Board pursuant
		to the terms hereof. 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		“(vi) Anything in the previous ARTICLE
		XIII and/or elsewhere in the Contract to the contrary notwithstanding, the
		Board of Education shall not reduce the number of ‘additional’
		vehicles held by the Contractor as of June 30th each Extension Year
		during the period of this Extension and Eleventh Amendment Agreement,
		except in instances of decreases of student population
		affecting the Contractor’s geographical service area(s) and/or type(s) of
		vehicle(s). With respect to this ARTICLE XIII and all other applicable aspects
		of the Contract, the BOE shall have the sole and absolute discretion to fix and
		determine which schools students shall attend throughout the New York City
		School District, to determine what types of vehicles shall be appropriate to
		transport individual pupils, and to make findings and decisions with respect to
		increases and decreases of student populations in the various geographical
		areas of the New York City School District.”
	 

	 
		(8) Performance Bond Requirements. Paragraph (4)(b)(v) of Section
		(E) of the Supplemental Ninth Amendment
		Agreement is hereby amended to the extent of adding the following:
	 

	 
		“Contractors with senior management
		with at least ten years of continual contract performance with the Board will
		have the option to either (a) post an
		annual performance bond in the amount required hereunder, or (b) pay to the
		Board an annual security fee equal to one half of one percent of such bond
		amount.” 
	 

	 
		(9) Assignment. Contractors
		may assign their Contracts subject to the prior approval of the Board.
		Contractors shall not be permitted to assign a portion of a specific item of
		service without the prior approval of the Board which approval shall only be
		granted when it is determined to be in the best interests of the Board in order
		to maintain service. In the event a Contract Item is split, the Contractor to
		whom part of an item is assigned shall be placed immediately behind the
		assignor in the Pick Order.
	 

	 
		(10) Billing Liaison. The Board
		shall designate a Board employee who shall serve as billing liaison to
		contractors, who shall promptly address inquires regarding contract billing and
		who shall have authority to resolve billing errors.
	 

	 
		(11) Route Changes and Use of Toll
		Roads. A Contractor may request the Board’s approval for
		an alternative vehicle route, which approval shall not be unreasonably
		withheld. Approval shall not be withheld for any such route change which
		(i) results in a reduction of travel time, or
		(ii) results in a non toll road route that is within fifteen
		(15) minutes in duration of the toll road route, unless a restricted time
		student is on such route and the additional time for the non-toll road route
		will exceed the time that the affected child shall be permitted to be on the
		bus, unless the bus shall not arrive at the school on time for the start of its
		regular session, and provided, that there shall be no additional cost to the
		BOE.
	 

	 
		(12) Hearings and Violations. The Contractor
		shall have the option to oppose an OPT Notice of Violation either in writing or
		in person. If the Contractor shall elect to submit a written opposi-
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		tion, the Contractor shall have the same
		rights as if it shall have appeared in person; however, the Contractor’s
		appeal shall be limited to the evidence presented in its written
		opposition.
	 

	 
		(13) Compensation for After School
		Programs. Contractors
		shall receive compensation for forty-five (45) minutes of service after the
		scheduled discharge time for after-school programs designated by the Director.
		For example, if a program shall have a 5:30 P.M. dismissal, the Contractor
		shall receive payment from 3:30 P.M. through 6:15 P.M.
	 

	 
		(14) Volume Automotive Fuel Purchasing and Administration
		Program. The Volume Automotive Fuel Purchasing and Administration
		(also known as “VAFPA”) Program, designated as Article XV-A under
		contract serial numbers 0065, 0075 and 8107, “Article 39-A” under
		contract Serial No. 9888, and Article 38-A under contract serial number 7263,
		is hereby amended to the extent that the first sentence of Paragraph (A)(5)
		thereof shall read as follows:
	 

	 
		“Commencing on the date on which each
		ULSDF Contractor started to purchase ultra low sulfur diesel fuel from the VAF
		Supplier and until June 30, 2006, each such ULSDF Contractor shall use only
		ultra low sulfur diesel fuel in its diesel engine school buses, as made
		available by the VAF Supplier.”
	 

	 
		(15) Prompt Payment Discount. Effective from
		April 1, 2003 until June 30, 2010 under Serial Nos. 0065, 0075, 7263, 8107 and
		9888, the BOE and the Contractor agree that the Contract is hereby amended by
		the deletion of all references to a two percent (2%) prompt payment discount,
		expressed in Article V entitled, “Payment,” of Contract Serial Nos.
		0065, 0075 and 8107, Article 28 entitled, “Payment,” of Contract
		Serial No. 7165, and Article 29 entitled, “Payment,” of Contract
		Serial No. 9888.
	 

	 
		(16) Billing Procedure; Deductions From Contractor
		Payments. No deductions or offsets from payments due Contractors
		under the Contract shall be made unless the Board shall contemporaneously
		provide the Contractor with a statement detailing the amount of the deduction
		and the basis therefor. Revisions to Contractor billing work sheets and payment
		authorization for charter services shall be made available to Contractors on
		line within 24 hours of such revision or authorization.
	 

	 
		(17) Field Trip Notices. The BOE shall
		advise all Contractors of all assignments of field trips after such assignments
		shall be made by posting such information on the BOE website.
	 

	 
		(18) Attachment of Contractor’s Contract Numbers and
		Items. To each of the previous extension and amendment
		agreements, the BOE had attached a listing of the Contractor’s contract
		serial numbers and item designations within each of such serial numbers. For
		purposes of this Extension and Eleventh Amendment Agreement, such listing shall
		be made part of “Attachment
		A,” as heretofore incorporated by
		reference.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		(19) All references in the Contract, as heretofore amended
		and extended, to the terms “Chancellor’s Board of Review” and/or
		“Board of Review,” are hereby deleted and replaced with the phrase
		“BOE Chief Executive for School Support Services or his/her
		successor.”
	 

	 
		(20) All other provisions of Contract Serial Nos. 0065, 0075
		and 8107, as amended by the 1979 Employee Protection Provisions First Amendment
		Agreement, the 1983 Extension and Amendment Agreement (originally unnumbered
		2nd Amendment), the 1986 Extension and Amendment Agreement
		(3rd Amendment erroneously labeled as 2nd Amendment) as
		amended further on June 24, 1986 (originally unnumbered 4th
		Amendment), the 1989 Extension and Amendment Agreement (5th
		Amendment erroneously labeled as 3rd Amendment), the 1992 Extension
		and Amendment Agreement (6th Amendment erroneously numbered as
		4th Amendment), the 1995 Extension and Amendment Agreement
		(7th Amendment erroneously labeled as 6th Amendment), the
		1996 Supplemental Amendment Agreement (8th Amendment erroneously
		labeled as 7th Amendment), the 2000 Extension and Ninth Amendment
		Agreement, and the 2003 Supplemental Tenth Amendment Agreement,
		except those provisions herein noted and revised, shall remain
		in full force and effect.
	 

	 
		(21) All other provisions of Contract Serial No. 9888, as
		amended by the 1991 Extension and First Amendment Agreement, the 1994 Extension
		and Second Amendment Agreement, the 1995 Extension and Amendment Agreement
		(3rd Amendment for Contract No. 9888), by the 1996 Supplemental
		Amendment Agreement (4th Amendment for Contract No. 9888), the 2000
		Extension and Ninth Amendment Agreement (5th Amendment for Contract
		No. 9888), and the 2003 Supplemental Tenth Amendment Agreement (6th
		Amendment for Contract No. 9888), except those provisions herein noted and revised, shall remain
		in full force and effect.
	 

	 
		(22) All other provisions of the Contract under Serial No.
		7263, as amended by the 1995 Extension and Amendment Agreement (unnumbered
		amendment of Contract No. 7263), the 1998 Extension Agreement and First
		Amendment, the 2000 Extension and Ninth Amendment Agreement (2nd
		Amendment for Contract No. 7263), and the 2003 Supplemental Tenth Amendment
		Agreement (3rd Amendment for Contract No. 7263), except those provisions herein noted and revised, shall remain
		in full force and effect.
	 

	 
		[NO FURTHER TEXT APPEARS ON THIS PAGE.]
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
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		IN
		WITNESS WHEREOF, the parties hereto have executed this Extension and
		Eleventh Amendment of Contract as of the year, month and day last below
		expressed.
	 

	 
		 
	 

	 
			
				
				  For the Board:
				

			 	
				
				   
				

			 	
				
				  For the Contractor:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  BOARD OF
				  EDUCATION OF
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  THE
				  CITY SCHOOL DISTRICT OF
				

			 	
				
				   
				

			 	
				
				  (Print Name of Contractor
				  Entity)
				

			 
	
				
				  THE
				  CITY OF
				  NEW YORK
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  By: 
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				   
				

			 
	
				
				  Maureen A. Hayes, Chief of
				  Staff
 for the Chancellor
				

			 	
				
				   
				

			 	
				
				  (Signature)
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Print Name and Title)
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Contractor’s Taxpayer ID
				  No
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Approved as to legal
				  sufficiency:
				

			 	
				
				   
				

			 	
				
				  The Contractor’s signatory
				  representative has 
				

			 
	
				
				  
 By: 
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  subscribed to and sworn before me
				  that he/she has duly
 executed this
				  Agreement with proper authority on
				

			 
	
				
				  BOE Office of Legal Services
				

			 	
				
				   
				

			 	
				
				  behalf of the Contractor on
				  this
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Approved as to description of terms
				  and conditions:
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   day of 
				

			 	
				
				   
				

			 	
				
				  , 2005.
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  
 By: 
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  BOE Office of Pupil
				  Transportation
				

			 	
				
				   
				

			 	
				
				  (Notary Public)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]