Vaughan launches Waterloo Wheelers, a free bike loaning service but the obnoxious Scott Fairchild, thinking it funny, crashes Dale's expensive racing bike, which Kevin mends. After Scott has sabotaged other bikes Kevin challenges him to a race, which lands him in hospital though Kenzie tries to point out Scott's stupidity to him. To get parents on side against the merger Lorna suggests forming a PTA but both she and Christine go head to head as to who should run it though Christine steps down as Kenzie's literacy teacher as Lorna gets on better with her. Olga backs Kevin's desire to transfer to Havelock, which has superior computing facilities and an impressed Vaughan suggests she become full-time whilst Audrey comes into a mysterious cash windfall.
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