Agenda - Public Works Committee - 04/15/2003

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P.W. CASE CONSIDER CHANGES TO MUNICIPAL STATE AID SYSTEM By Steve Jankowski City Engineer Background: Annually the City receives over $600,000 from the state toward the construction and maintenance of its Municipal State Aid System (MSAS). This system was established in the late 1950's as a method to provide a portion of the state gas tax revenues to counties and municipalities. Its purpose is to provide support for the arterial and collector roadways within the municipality. State law allows up to 20% of its base mileage to be designated as state aid routes. Monies which the City receives from the funding source can be used only to construct roadways on MSAS designated routes. The purpose of this case is to solicit from the Committee a recommendation to modify the City's MSAS system such that major streets within the Town Center would become eligible to be constructed with MSAS monies. In late February, City staff proposed modifications to MnDot to the City's MSAS which would be consistent with the preliminary design of the Town Center. MnDot must agree to the reasonableness to any proposed changes to the MSAS. Attached to this case is the letter sent to MnDot for review which illustrates the proposed modifications to this system. It is anticipated that MnDot's concurrence with these changes will be received shortly. However, it will be necessary for the City Council to pass a formal resolution requesting system modification prior to May 1, 2003 in order for any of the system to be eligible for funding during the 2003 construction season. It might be noted that some of the changes extend beyond the Town Center project. The reason for these additions stems from the desire of the City to designate as closely as possible the maximum allowable amount of mileage onto the system. This is due to the fact that the City's annual funding increases as the cost of bringing the City's designated system up to MSAS standards increase. Recommendation: Staff recommends that the Committee recommend to City Council that it adopt a resolution modifying the City's MSAS. Action: Motion to recommend that the MSAS be amended as proposed, and that a resolution for adopting this modification be brought to the April 22nd, 2003 City Council meeting. Reviewed by: City Administrator Public Works Director/Fire Chief Street Maintenance Supervisor PW: 04/15/03