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STAFF REPORT DATE: February 21, 2023 CONSENT AGENDA ITEM: Approve Resolution Establishing Municipal State Aid Streets SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Marty Powers, Public Works Director Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council approve the designation of Island Trail N, from Eagle Point Boulevard to 5th Street N, and Island Trail N, from 5th Street N to 10th Street N (CSAH 10) as municipal state aid routes thereby increasing the municipal state aid system by 0.57 miles? BACKGROUND: As a Municipal State Aid city, the City of Lake Elmo is eligible to designate certain higher volume roadways that are functionally classified as collector or arterial streets, as Municipal State Aid routes, and are eligible to receive a proportionate share of state aid funding to assist with the maintenance and construction of the MSA roadway network. Streets designated as Municipal State Aid Streets must meet the selection criteria of Rule 8820.0700, sub. 3. The City is allowed to designate roadway mileage up to a cap of 20% of the total local and county roadway system within the City limits. In addition, the City is allowed to designate any county road or county state aid highway (CSAH) which is turned back to the city with said mileage being over and above the 20% limitation. Municipal State Aid (MSA) funding is allocated in accordance with state statutes with one-half of the annual funding based on each city’s population relative to other state aid cities, and one-half of the annual funding based on each city’s estimated “Needs”. PROPOSAL DETAILS/ANALYSIS: Due to the ongoing development activities the city continues to add mileage to the public street system each year, providing the city opportunities from time to time to designate additional eligible streets as state aid routes. Following the 2022 annual certification of mileage to the Office of State Aid the total mileage within the corporate limits of Lake Elmo was 96.99 miles and the undesignated state aid mileage is 1.15. In reviewing the city street network, staff has identified Island Trail North as an eligible roadway for State Aid designation to increase the annual needs for the purpose of state aid funding. FISCAL IMPACT: With the designation of Island Trail North as a municipal state aid route the City will increase the City’s state aid system by approximately 0.57 miles of roadway, leaving an additional 0.58 eligible miles undesignated. The additional roadway will increase the City’s determination of Needs on an annual basis resulting in an increased allocation of Municipal State Aid funding. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent Agenda, a Resolution approving revisions to the City’s Municipal State Aid System (MSAS) as presented to designate Island Trail N, from Eagle Point Boulevard to 5th Street N, and Island Trail N, from 5th Street N to 10th Street N (CSAH 10), as municipal state aid routes for the determination of Needs. If removed from the consent agenda, the recommended motion for the action is as follows: “Move to approve Resolution 2023-013, Establishing Island Trail N, from Eagle Point Boulevard to 5th Street N, and Island Trail N, from 5th Street N to 10th Street N (CSAH 10), as Municipal State Aid Streets.”