City Council Meeting Date: March 3, 2026
To: Mayor and Members of Council
City Administrator
From: David Bennett, Public Works Director/City Engineer
Title
Consider Approval of MOU with Three Rivers Community Action/Hiawathaland Transit related to Transit Services in Northfield.
Body
Action Requested:
The Northfield City Council Approves the MOU with Three Rivers Community Action/ Hiawathaland Transit related to Transit Services in Northfield.
Summary Report:
Hiawathaland Transit recently prepared a MOU related to transit services for local jurisdictions that they service in Southeast MN including Northfield. The main purpose of the MOU was related to the local cost share on buses for smaller jurisdictions. Smaller local jurisdictions would have larger increases in their budgets to cover their share of the buses. The MOU moves to a more uniform amount that is collected over the term of the MOU versus the spikes that a jurisdiction would see when they have to replace a bus.
The City cost share for buses is typically 20%. Hiawathaland has some time received additional grants that have lowered the Northfield match to 10%. The current MOU provides for a uniform payment of $12,000 annually to cover Northfield local match for buses. The City and Hiawathaland began working on the MOU in 2025, the first year payment will be $24,000 to cover 2025 and 2026. As the MOU nears the end, Hiawathaland will forecast bus expenditures over the next five years and adjust the MOU with Northfield.
The term of the MOU is January 1, 2026 through December 31, 2029. The City will pay $24,000 in the first year and $12,000 in the following years.
City Plans & Policies Relevance:
NA
Alternative Options:
NA
Financial Impacts:
Funding for the MOU comes from the Vehicle Equipment Replacement Fund for the Buses.
2026 $24,000
2027 $12,000
2028 $12,000
2029 $12,000
Total $60,000
Tentative Timelines:
MOU 2026-2029