To:

Members, Board of Education

From:

Terry B. Grier, Ed.D.

Date:

March 17, 2006

RE:

Renewal of Driver Education Services Contract

North Carolina Driving School, Inc. was awarded a contract to provide driver education services to the district. The contract began July 1, 2002 for a three year term with the option to renew for two additional years. The contract stipulates a two-percent annual increase for each year that the contract is renewed.

The services performed to date have been satisfactory. The renewed term will be July 1, 2006 through June 30, 2007 and the per student cost will increase from $157.06 to 160.20. Total expenditure ($160.20 x 5500 students) = $881,100.

The district uses state driver training funds to pay for these services. Based on the planning allotment information we have received to date, the district’s 2006–2007 state driver education allotment will cover the cost increase stipulated in the contract.

RECOMMENDATION: The Administration recommends the renewal of the contract at $160.20 per student for the 2006–2007 school year.