Richfield approves $718,890 settlement to resolve special‑education transportation billing dispute with MTN

The Richfield School Board approved a payment‑credit and mutual‑release agreement Aug. 18 resolving a dispute with Metropolitan Transportation Network (MTN) over special‑education and homeless transportation billing. Board materials and administration explained the settlement covers $718,890.32 in disputed charges.

Superintendent Steven Younowski and other administrators told the board the dispute turned on contract language and billing units: MTN billed for multiple “runs” in situations administrators say should have been billed as a single daily “route.” The difference inflated billed transportation costs, district staff said.

Administrators said the settlement will not materially affect the district’s local budget because these transportation costs are reimbursed through the state. They added that if the inflated charges remained on the books it could force the district to meet a higher “maintenance of effort” for special education in subsequent years.

District legal and finance staff reviewed and negotiated the agreement with MTN and recommended approval. The administration also said it has moved future service to another vendor, Frontier, and does not plan to renew business with MTN.

Board discussion included verification that the settlement covered one recent year of disputed billing. Administrators said the state will not intervene in the contract dispute and that other vendors typically price by runs; the district emphasized contractual and billing changes to avoid future overbilling.

The motion to approve the payment‑credit and mutual‑release agreement passed; the board did not indicate any planned additional legal action.