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HomeMy WebLinkAbout87-55 - ADMIN Resolution - City Council - 1987/05/18RESOLUTION N0. 87-55A RESOLUTION HOLDING THE STATE OF MINNESOTA HARMLESS FOR ISSUANCE OF A VARIANCE RELATIVE TO THE DISTRIBUTION OF MUNICIPAL STATE AID MAINTENANCE FUNDS WHEREAS, the City of St. Louis Park, Minnesota, has requested a variance from Minnesota Rule 8820.1400 so as to permit an increase in the City of St. Louis Park's 1987 Maintenance Allotment from its Municipal State Aid account; and WHEREAS, the Commissioner of Transportation has granted said variance pursuant to receipt of a City Council adopted resolution indemnifying the State for its actions taken in granting said variance. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL of the City of St. Louis Park, Minnesota that it indemnifies, saves and holds harmless the State of Minnesota and all its agents and employees of and from any and all claims, demands, actions or causes of actions of any nature or character arising out of or by reason of, in any manner, the granting of the increase in the City of St. Louis Park's 1987 Maintenance Allotment in any other manner than as in accordance of Minnesota Rule 8820.1400 and further agrees to defend at its sole cost and expense any action or proceeding commenced for the purpose of asserting any claim of whatsoever character arising as a result of the granting of said variance. Adopted by the City Council May 18, 1987. Attest: Reviewed for administration: )444,„ Approved as to form and execution: May 18, 1987 8a TO: City Council THROUGH: James L. Brimeyer, City Manager FROM: James N. Grube, Director of Public Works SUBJECT: Variance from Minnesota Rules for Additional Municipal State Aid Street Maintenance Funds On February 17, 1987, the City Council adopted Resolution No. 87-17 requesting Minnesota Department of Transportation (Mn/DOT) grant a variance from Minnesota Rules which would allow the City to claim $50,000 from its State administered Municipal State Aid Street account instead of an allowable $33,270 for use within the City's Street Maintenance budget (see attached). Upon receipt of the City's variance request, Mn/DOT completed necessary administrative functions, including providing notice to the public of its intent to act upon said variance request, and found in favor of the City (also see attached). Accordingly, the City must complete the administrative process necessary for release of the funds by adopting the attached resolution which "holds the State harmless" for its actions taken in support of the City. In this instance, adoption of the "hold harmless" resolution is a necessary function required by State Rules and has no legal implications relative to payment of the requested amount. RECOMMENDATION: It is recommended the City Council adopt the attached resolution which holds the State harmless for its actions taken in the issuance of a variance allowing for an increase in payment of the City's street maintenance fund allotment. ja Attachment February 17, 1987 8d TO: City Council THROUGH: James L. Brimeyer, City Manage FROM: James N. Grube, Director of Public Works SUBJECT: Variance from Minnesota Rules for Additional Municipal State Aid Street Maintenance Funds In accordance with the provisions of the State Constitution, cities with populations over 5,000 are eligible for receipt of funds from the State for the purpose of local street construction and street maintenance. Whereas State laws require that expenditure of funds from the street construction account be administered by the Minnesota Department of Transportation (Mn/DOT), cities are al lowed to use their discretion in the use of the street maintenance funds. Accordingly, Mn/DOT releases street maintenance funds, in an amount equal to $1,500 per eligible road mile, each year to the eligible cities with "no strings attached". In the case of St. Louis Park, the City receives $33,270 every year for use in street maintenance tasks. Recognizing that cities may choose to expend more than the established $1,500 eligible mile street maintenance allotment for street repair purposes, the Minnesota legislature established certain rules whereby cities may request a portion of street construction account be "rolled over" into the street maintenance account. The "roll over" rules are rather straightforward in that a representative of the City (most often the Director of Public Works) requests in writing that the desired amount be reallocated from the street construction account to the street maintenance account. The only other administrative requirement provides that the City certify its street maintenance costs before the end of each year. Historically, the City of St. Louis Park has chosen to take advantage of this "loophole" to supplement its street maintenance budget. Typically, staff requests $50,000 be released to the City instead of the typical $33,270. Due to staff oversight in 1986, the City failed to submit its request to Mn/DOT in time to gain release of the extra $16,730 in 1987. Accordingly, Mn/DOT has advised that the City Council must take formal action to request release of the funds if it desires the extra money be "rolled over". RECOMMENDATION: It is recommended the City Council adopt the attached resolution requesting release of an additional $16,730 from its State Aid fund account for street maintenance purposes. ja