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LAKE ELMO CITY COUNCIL MINUTES JANUARY 20, 1987 PAGE 10 improvements. The City has no bridges and no Federal Aid Urban or Federal Aid Rural streets. The one opportunity the City has where this Agreement would be necessary is a federally aided Traffic Sign Inventory and Replacement Program in which the City expressed an "intent to participate" in 1986. This program pays 90% of the cost to Inventory and replaces defective stop signs, yield signs, etc. This program has been delayed because the interest in the program exceeded the funds available and MnDOT is waiting for a second round of funding. Bohrer added that although this Agreement is not really needed until Lake Elmo wants to do a federally aided project, he sees no .liability in having an executed Agreement on file. Bohrer recommended the Council approve the resolution for the MnDOT Agency Agreement. City Attorney Knaak has read the resolution, and sees no legal reason why the City should not enter into the agreement, and recommends approval. Knaak was aware of two other cities that have entered into this agreement. Bohrer explained that this does not obligate the City to any program. When we do have the opportunity to participate in a federally funded highway related program. The mechanism is in place and the funds can be transferred. M/S/P Graves/Moe - to adopt Resolution 87-19 which authorizes the City of Lake Elmo to enter into an agency agreement with the Minnesota Department of Transportation. (Motion carried 5-0). G. Municipal State Aid. Update City Engineer Bohrer reported in his letter of 1-14•-87 that a portion of the State gasoline tax is returned to all cities over 5,000 population in the form of Municipal State Aid. This money is apportioned to qualifying cities based on their population and based on the amount of money needed to improve their State Aid streets. Lake Elmo's 1987 construction allotment is approximately $133,471. Adding this to Lake Elmo's unexpended MSA construction fund of $382,939 equals $516,410 available for MSA construction projects in 1987. In 1981, a 10-year MSA Improvement Program was established. This program established a time table for upgrading MSA streets. The streets were prioritized based on their condition and amount of traffic. Therefore, the streets in the worst condition were reconstructed first. The following statements were made about the Plan. 1. Keats Avenue from 47th Street to TH 36 was completed in 1982. 2. 45th Street, Julep Avenue and 47th Street from Jane Road to Keats Avenue was completed in 1984. 3. Klondike Avenue and Lower 33rd Street was planned to be reconstructed in 1986 but due to insufficient right--of-way width was not approved by MnDOT. The City applied for a variance but was denied due to poor sight distance at Lake Elmo Avenue because of the Joshua Taylor buiild.ing. This project is on indefinite