'GREEN' BIDDERS WIN SCHOOL BUS ROUTES.

Byline: Helen Gao Staff Writer

Despite intense lobbying from the Teamsters union and San Fernando Valley business leaders, the Los Angeles school board rejected the bid Thursday of its main bus-service provider, instead agreeing to spend $1 million extra a year to put kids in ``green'' diesel buses.

The decision likely will lead to layoffs of 300 bus drivers, mechanics and other support staffers, including many at Laidlaw Transit Inc.'s facilities in Canoga Park and Tujunga, where it operates a fleet of 350 older diesel buses.

Laidlaw, the lowest bidder at $37.5 million to serve 258 routes for three years with conventional diesel buses, was backed by the Valley Industry and Commerce Association and Teamsters Local 572. The company had also hired Fleishman Hillard, a politically connected communications firm, to lobby on its behalf.

Despite facing a budget crunch, the board unanimously chose First Student Inc. and Cardinal Transportation Group Inc. for a $67.5 million, five-year contract.

First Student plans to invest $18.5 million to buy ``green'' diesel buses, with traps for minute particles of pollution, that would emit significantly lower quantities of these particulates than Laidlaw's conventional diesel fleet does.

``It's better for the kids to have a new bus to ride on, with the latest emission controls in it,'' said Antonio Rodriguez, director of transportation for the Los Angeles Unified School District.

``I am looking at a brand new bus for $10 more a day roughly. Yeah, it's more money, but the environmental impact on the kids is worth it. It's not all about bucks.''

According to the Natural Resources Defense Council, children who ride a conventional diesel school bus for an hour or two every day are being exposed to as much as 46 times the cancer risk deemed acceptable by the U.S. Environmental Protection Agency. A representative from the environmental group told the board the pollution level inside a school bus is four times higher than outside.

``In a financial-crisis situation, we are shocked the district would award (the contract to higher bidders) under this kind of scenario,'' said James Ferraro, area vice president for Laidlaw, which has provided transportation service to the district for 18 years.

He added that the company has plans to acquire buses running on ``clean'' compressed natural gas as it retires old vehicles.

But school district officials said their decision to contract with the higher bidders makes business sense. Laidlaw now operates 640 routes for the LAUSD, or 57 percent of the routes that are under contract. The district also has its own fleet.

When Laidlaw bus drivers went on strike last April to demand higher wages, more than 75,000 students were stranded, and district officials scrambled to provide interim transportation. Even with losing the contract for 258 routes, Laidlaw remains the primary transportation provider for the district, serving 528 routes.

``The distribution of contracts is advantageous to the district so it's not over-reliant on one contractor,'' said LAUSD business manager Michael Eugene.

Rodriguez said Laidlaw is not adequately staffed to handle its contracted workload. On any given day, he said, district officials must send nine to 10 buses to cover for Laidlaw, which has not been able to meet the contract requirement to have extra buses and staffers on hand to handle contingencies.

School board member Marlene Canter said kids in her district have missed first and second periods because Laidlaw buses didn't show up.

``They promised more than they can deliver,'' said Canter.

In Laidlaw's defense, Ferraro said the district has hired away some 300 bus drivers from the company in the past three years, resulting in a constant struggle for Laidlaw to recruit and train new ones.

When news spread that the district procurement staff recommended against its bid, Laidlaw mounted an aggressive campaign employing Fleishman Hillard, which helped the district pass its $3.35 billion school construction bond last November. Board members said they received several e-mails and letters.

District spokeswoman Stephanie Brady said Fleishman Hillard is not currently a district consultant.

Fred Gaines, VICA board chairman, wrote a letter in support of Laidlaw.

``Laidlaw Education has provided the LAUSD with reliable, safe and cost-effective service for many years,'' he wrote.

``Combined with Laidlaw Education's strong commitment to the civic community in Los Angeles, the company employs 725 hard-working men and women whose livelihoods would be greatly impacted by the staff decision.''

Lonnie Holmes, business representative for Teamsters Local 572, said his members would be hit hard.

``We've got a lot of single-parent bus drivers who make their living off Laidlaw,'' he said. ``Laidlaw has provided good wages and benefits to those single parents.''