By Tom Hintgen

Otter Tail County Correspondent

County commissioners, on May 20, heard an update about the upcoming change in bus service for Otter Tail County. 

Otter Express bus service, operated for many years in Otter Tail County by Fergus Falls-based Productive Alternatives, is shifting to a proposed Joint Powers Board consisting of county government and county communities.

County Deputy Administrator Nick Leonard reminded county commissioners that a Joint Powers Board, starting with Otter Tail County and the cities of Pelican Rapids and Fergus Falls, will manage the Otter Express system. Otter Express operations will be primarily funded through grants, fares and contracts.

“The Joint Powers Board, starting in 2026, will enter into contracts, establish policies, procure services and oversee operations.” Leonard said. “After grants are obtained, through the Minnesota Department of Transportation (MNDOT), we will have ample time to set priorities for bus service in Otter Tail County.”

Leonard said that more communities such as Parkers Prairie and Perham, which have an interest in bus service, will become part of the Joint Powers Board. He said there also is a possibility of Wilkin County, which includes the town of Breckenridge, getting on board.

“Public transportation, and bus service in particular, is very important here in Otter Tail County,” said County Commissioner Kurt Mortenson of rural Underwood.

County board members who will serve on the Joint Power Board include Commissioner Mortenson along with Commissioner Dan Buckholz of Perham and Commissioner Bob Lahman of Parkers Prairie. The total number of voting members shall be 6.

Alternates will be designated with full voting rights in the absence of regular members. Non-voting ex officio members will be appointed as needed. Of the board members initially appointed, two members shall have their terms expire Dec. 31, 2025, two members shall have their terms expire Dec. 31, 2026, and two members shall have their terms expire Dec. 31, 2027.

All members shall be appointed for two-year terms.

“The Joint Powers Board will shall oversee all aspects of Otter Express operations and planning,” Leonard said. “The board will approve and monitor annual budgets and financial reports and also establish and revise routes, schedules, fares and capital plans.”

There will also be board management of federal, state and local funding along with grant compliance while engaging stakeholders through meetings and public hearings.

“Special emphasis,” Leonard said, “will include adopting policies on safety, equity, accessibility and sustainability. The Joint Powers Board will hire and supervise executive staff and establish advisory committees as needed.”

Otter Tail County shall serve as the fiscal agent. Each party is responsible for a proportionate share of capital investments and unanticipated operating expenses. The proportionate responsibility of each party, initially, is Otter Tail County, 61 percent and City of Fergus Falls, 28 percent.

“The board will seek additional funding sources, including state and federal grants along with public-private partnerships,” Leonard said. 

The Minnesota Department of Transportation (MNDOT) will conduct required financial audits. There will be federal single audit compliance with costs included in the MnDOT operating grant budget. The Joint Powers Board will meet at least quarterly with a majority of appointed members constituting a quorum.