CITY OF CHARLOTTESVILLE, VIRGINIA
                 CITY COUNCIL AGENDA




  Agenda Date:          July 7, 2021 – SPECIAL MEETING

  Action Required:      Introduction/ First Reading of Resolution to Appropriate
                        Funds to be used for School Bus Driver Incentive Plan

  Presenter:            Chip Boyles, City Manager

  Staff Contacts:       Chip Boyles, City Manager

  Title:                Resolution Appropriating $332,952 for School Bus Driver Benefits
                        Incentive Plan


Background:

It has been highly publicized that a nationwide school bus driver shortage exists. According to a
recent School Transportation News article, 80% of respondents surveyed said their school district
or bus company is currently lacking in school bus drivers. The Charlottesville School System
school bus driver needs are experiencing this same shortage. Of 30 drivers needed to properly
service the school route needs, the City currently has 9 on-staff drivers. Routes may operate with
as few as 14 drivers with additional shifts.

Factors contributing to driver shortages include; salary & benefits, commercial driver’s license
requirements and delays, background checks, and behavior and support of student riders.
To address contributing factors within the City’s control, staff has developed a proposal to increase
benefits through financial incentives and health benefits for new and existing drivers.


Discussion:

Staff recommends the approval of a $2,400 hiring and longevity bonus eligible to new and existing
bus drivers over a 9-month period. This bonus would be accompanied with the benefit of a health
care premium cost equivalent to that of a 40 hour employee. Hourly pay rates would remain the
same, still the highest in our immediate region.

Per City Code 2-42(b) City Council may, by unanimous consent, add the introduction and first
reading of this resolution to the agenda for its July 7, 2021 special meeting. City Council cannot
vote on the Resolution until a second reading is conducted.

City staff recommends a bonus program of $2,400 for new and existing drivers to attract immediate
attention of new drivers and better compensate the current nine drivers. This bonus would be
accompanied with the offer of health insurance at a premium cost equivalent to that of a 40 hour
employee. This change will also provide a cost savings to existing drivers. Bonuses would be
paid in three phases: upon positive completion of CDL training, mid-year and end of year. (Likely
a larger payment at end of year to both help retain and to assist in summer months hiatus.)

Hourly compensation would remain the same but separate from the health care incentive and bonus
incentive. In discussion with Albemarle County, their starting rate for FY22 is $16.20 to $18.89
compared to the City’s $16.97 to $18.78.

The details of the proposal are as follows:

   1. This proposal is a 2 year pilot program.
   2. Budget will include 30 driver positions. Currently, there are 28 budgeted – this does not
      include the 2 Lead Driver positions and the 1 hostler position. The proposal will add two
      (2 ) - 30 hour FTEs to the Pupil Transportation budget.
   3. $2,400 Bonus will be offered. Specific payout amounts and intervals to be determined
      with a portion to be paid up front and a remaining balance to be paid over the entire school
      year.
   4. Driver Healthcare Premiums will be equivalent to the 40 hour premium rates

Alignment with City Council’s Vision and Strategic Plan:

Approval of this agenda item aligns with Goal 1: An Inclusive Community of Self-Sufficient
Residents and Goal 5: A well-managed and Responsive Organization of the City’s Strategic Plan.

Community Engagement:

As a personnel incentive program, community engagement has not occurred. The current
requests are emergency in nature with no opportunity for community input beyond City Council
meetings.

Budgetary Impact:

The first year of this incentive program is expected to cost $332,952. The Charlottesville City
Schools (CCS) has agreed to fund this amount for two years (FY23 and FY24) utilizing either
CARES or American Rescue Plan funding as an eligible school improvement expense.

Recommendation:

Staff recommends approval and appropriation of these funds.

Alternatives:

City Council may elect not to appropriate funding for these purposes at this time or may elect
another driver incentive program to attract drivers.

Attachments:

Appropriation Resolution
  RESOLUTION APPROPRIATING FUNDING FOR THE SCHOOL BUS
               DRIVER INCENTIVE PROGRAM
                         $332,952


       BE IT RESOLVED by the Council of the City of Charlottesville, Virginia
that the sum of $332,952 is hereby designated to be available for expenditure, at
the discretion of the City Manager, for costs associated with an FY22 School Bus
Driver Incentive Program.

      Expenditures

      $332,952 Fund: 105        Cost Center:2491001000          G/L: 599999


      Revenues

      $332,952 Fund: 105        Cost Center:2491001000          G/L: 498900