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CITY COUNCIL AGENDA REPORT
MEETING DATE: NOVEMBER 10, 2014
AGENDA#: 5E
PREPARED BY: LARRY POPPLER, CITY ENGINEER/ INSPECTIONS DIRECTOR
PRESENTED BY: LARRY POPPLER, CITY ENGINEER/ INSPECTIONS DIRECTOR
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION REQUESTING ADVANCEMENT
OF MUNICIPAL STATE AID FUNDS
DISCUSSION: Introduction
The purpose of this item is to make a request to MNDOT for the advancement of
Municipal State Aid (MSA) Funds for 2015 projects.
History
On August, 2014 the City Council approved the 2015-2019 Capital Improvement
program. The plan includes two-2015 projects on designated State Aid routes.
• 150th and TH 13
• Duluth Avenue Signal Replacement
Current Circumstances
The City of Prior Lake depleted our State Aid Construction Account balance in 2013
for the construction of the Ridgemont/ Main /TH 13 project and the CSAH 12 Pro-
ject. The City will receive the annual allotment in 2015; however, expenditures are
expected to exceed the annual allotment.
Minnesota State Statutes 162.14, Subdivision 6 allows for advances from our State
Aid Construction Account.
Conclusion
It is recommended that the City request$1,400,000 in advancements from the State
Aid Construction Account for 2015 Projects. City Staff are projecting a need for ap-
proximately$1,100,000 in advancement. However, considering these projects have
not yet been designed or bid, a request for a higher amount is appropriate. The City
of Prior Lake is not penalized if the advancement amounts end up being less than
the requested amount.
ISSUES: Municipal State Aid Funds are administered by the Minnesota Department of Trans-
portation. The funds are limited to use on streets meeting state aid standards. The
funds are divide into two categories. One category is maintenance. The other is for
construction of new streets/intersections.
The program is administered so that those municipalities which show a greater
"need" generally receive greater funding. The only impact of advancing funds, is the
fact that future year allocations may be reduced.
Prior Lake has successfully received advancements over the years.
FINANCIAL If the City Council decides not to make a request for advancement or if the City is
IMPACT: unsuccessful in securing advancement funds, Reconstruction Bonds would be ad-
justed for these projects accordingly.
The current State Aid balance is negative ($682,271). Prior Lake's annual allotment
is received in January of each year and fluctuates slightly each year. The 2015 State
Aid allotment is $535,000 which will bring our balance to ($147,271)without consid-
eration of these projects.
ALTERNATIVES: There are three alternatives for the City Council to consider:
1. Approve Resolution 14-XX as part of the consent agenda requesting the ad-
vancement of State Aid Funds.
2. Deny this item for a specific reason and provide staff with direction.
3. Table this item to a certain date in the future.
RECOMMENDED
MOTION: A motion and a second for Alternative #1
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RESOLUTION 14-xxx
A RESOLUTION REQUESTING THE ADVANCEMENT OF MUNICIPAL STATE AID FUNDS
Motion By: Second By:
WHEREAS, The City of Prior Lake is implementing Municipal State Aid Street Projects in 2015 which will
require State Aid funds in excess of those available in its State Aid Construction Account; and
WHEREAS, The City of Prior Lake is prepared to proceed with the construction of said projects through
the use of advance of encumbrances from the general State Aid Construction Account to
supplement the available funds in their State Aid Construction Account; and
WHEREAS, Repayment of funds so advanced will be made in accordance with the provisions of Minnesota
Statutes 162.14, Subdivision 6 and Minnesota Rules Chapter 8820.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA
as follows:
1. The recitals set forth above are incorporated herein.
2. The Commissioner of Transportation is hereby requested to approve this advance for financing approved
Municipal State Aid Street Projects of the City of Prior Lake up to an amount of$1,400,000.00 in
accordance with State Aid Rules.
3. Repayments from the 2015 accrual to the Municipal State Aid Street Construction Account of the City of
Prior Lake is hereby authorized.
PASSED AND ADOPTED THIS 10th DAY OF NOVEMBER 2014.
VOTE Hedberg Keeney McGuire Morton Soukup
Aye ❑ ❑ ❑ ❑ ❑
Nay ❑ ❑ ❑ ❑ ❑
Absent ❑ ❑ ❑ ❑ ❑
Abstain ❑ ❑ ❑ ❑ ❑
Frank Boyles, City Manager