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STAFF REPORT <br />DATE: May 21, 2024 <br /> CONSENT <br /> <br />AGENDA ITEM: Approve Resolution Requesting a Variance from Standard for State Aid Operations <br />for the 15th Street North Improvements <br />SUBMITTED BY: Jack Griffin, City Engineer <br /> REVIEWED BY: Clark Schroeder, Interim City Administrator Clarissa Hadler, Finance Director Marty Powers, Public Works Director <br /> Chad Isakson, Assistant City Engineer <br /> <br /> <br />ISSUE BEFORE COUNCIL: Should the City Council approve a resolution, requesting a variance from <br />Minnesota Rules for State Aid Operation 8820.2800 subpart 2A for the 15th Street North Improvements? <br /> <br />BACKGROUND: On May 7, 2024 the City Council accepted contractor bids and awarded a contract for <br />the street improvements along 15th Street North, from Inwood Avenue to the Lake Elmo-Oakdale City <br />limits. 15th Street North is a designated municipal state aid route and the project is proposed to be funded, <br />in part, using $330,000 from the City’s municipal state aid construction funds. <br /> <br />PROPOSAL DETAILS/ANALYSIS: Minnesota Rules for State Aid Operation 8820.2800 subpart 2A, <br />Eligibility for Funding, requires all plans to be approved by the state-aid engineer before opening contractor <br />bids to be eligible for state-aid construction funding. Although the City’s construction plans used for <br />obtaining contractor bids did include all state aid review comments through Addendum #1, formal approval <br />of the plans by the State Aid Engineer had not yet been received prior to the April 18, 2024 bid opening. <br /> <br />Therefore, the City must apply for and receive a Variance to the State Aid Operations in order to maintain <br />funding eligibility. The application packet for the Variance Committee must be submitted by June 3, 2024. <br /> <br />FISCAL IMPACT: The post-bid total estimated project cost is $532,000. The improvements will be <br />funded through a combination of Municipal State Aid Funds, in the amount of $330,000; Special <br />Assessments, in the amount of $89,000, and General Tax levy funds in the amount of $113,000. Without <br />an approved variance from the State Aid office, the Project will not be eligible to receive state aid funds. <br />RECOMMENDATION: Staff is recommending that the City Council approve a Resolution, as part of the <br />consent agenda, Requesting a Variance from Standard for State Aid Operation for the 15th Street North <br />Improvements. If removed from the consent agenda, the recommended motion for this action is as follows: <br />“Move to approve Resolution No. 2024-069, Requesting a Variance from Standard for State Aid <br />Operation for the 15th Street North Improvements.” <br /> <br />ATTACHMENTS: <br /> <br />1. Resolution Requesting a Variance from Standard for State Aid Operation for the 15th Street North <br />Improvements. <br />2. Variance Application Packet.