Minnetonka staff urges clarity on Metro Micro zones and outlines provider options as contract nears expiry

Minnetonka City economic development staff on Monday presented findings from a Nelson Nygaard transit study and urged clearer parameters for Metro Transit’s on‑demand microtransit, saying the city has about six months remaining on its current cooperation agreement, which expires July 31.

“Kiersten Yeager, the economic development coordinator, said the study shows Metro Micro is an on‑demand shared ride public service intended to operate in smaller zones and complement the region’s regular bus and light‑rail lines,” Yeager said. “We have roughly 6 months until…that contract ends.”

The consultant’s four headline recommendations staff flagged were: (1) clearly define Metro Micro service parameters and the geographic zones it will cover in Minnetonka; (2) consider a crosstown connection linking the 394/Opus area, downtown Hopkins and other nodes; (3) advocate to maintain transit service on County Road 101 south of Highway 7; and (4) request that Hopkins Crossroads Park‑and‑Ride be included in Metro Transit’s Key Express network.

Staff also summarized options for who would provide local service after the current agreement lapses: renew the contract with Metro Transit; negotiate with a suburban provider (for example, Southwest Transit); become the city’s own transit operator (noted as having substantial drawbacks); or use multiple providers. The consultant provided data for those comparisons but did not single out a recommended provider.

The presentation addressed service types that currently operate in Minnetonka — traditional buses, Metro Mobility for riders with disabilities, Transit Link (a scheduled shuttle), and park‑and‑ride connections — and discussed how microtransit could be used to feed higher‑capacity routes such as the Green Line extension expected in 2027.

Yeager said the study shows Minnetonka’s ridership dropped sharply during the pandemic and is recovering; the consultant found Minnetonka’s rebound is, in the study’s analysis, faster than several peer suburbs, a pattern staff said would require more study to explain.

On funding, staff reiterated that fare revenue accounts for a small portion of operating budgets (the presentation cited approximately 10 percent for Metro Transit overall) and that other funding sources include motor vehicle sales tax, the regional transportation sales and use tax, and federal grants.

Next steps: staff said they will continue regular discussions with Metro Transit, provide the Nelson Nygaard recommendations for consideration in Metro Transit’s Network Now plan, and begin negotiating the next agreement. If a final agreement is not reached by July 31, staff said the city would typically extend the existing contract in its current form while negotiations continue.