04-0369R

RESOLUTION REQUESTING A VARIANCE FROM THE MINNESOTA DEPARTMENT OF TRANSPORTATION AND INDEMNIFY THE STATE OF MINNESOTA IN CONNECTION WITH THE GRANTING OF A MINNESOTA STATE AID VARIANCE FOR THE CONSTRUCTION OF AIRPORT ROAD AND STEBNER ROAD.

BY COUNCILOR STOVER:

WHEREAS, it was deemed necessary for the public convenience and safety that Airport Road and Stebner Road (City Project No. 9042MC98) be constructed; and

WHEREAS, this project will not be eligible for municipal state aid funds unless it is constructed to state aid rules, or unless a variance is granted; and

WHEREAS, project development and construction engineering costs are eligible for reimbursement from state aid funds and are limited to 25 percent of the eligible construction costs; and

WHEREAS, the sum of the project development and construction engineering costs exceeded the 25 percent limit which requires a variance from the commissioner of transportation in accordance with the Minnesota Rules Chapter 8820.3300.

NOW, THEREFORE, BE IT RESOLVED, that the city of Duluth requests the commissioner of transportation for a variance from Minnesota Rules Chapter 8820, whereby the urban state aid standards be reduced for this project allowing for reimbursement of project development and construction engineering costs in excess of the 25 percent limitation and further provides that if the commissioner of transportation grants the variance that the city of Duluth hereby agrees to indemnify, save and hold harmless the state of Minnesota and its agents and employees of and from any and all claims, demands, actions or cause of action arising out of or by reason of the construction of Airport Road and Stebner Road in the city of Duluth in any manner than in accordance with the Minnesota Rule 8820.1500 and further agrees to defend at its sole cost and expense any action of proceeding commenced for the purpose of asserting any claim of whatsoever character arising as a result of granting of the variance.


STATEMENT OF PURPOSE:  Total project development and engineering costs for the Airport Road/Stebner Road reconstruction project - a multi-jurisdictional project completed in 2003 and involving the city of Duluth, St. Louis County and Mn/DOT - exceeded the standard municipal state aid (MSA) limitation on project development and engineering costs by approximately $30,000. A state aid variance, if granted, will permit the city to expense MSA funds to pay the exceedance. In order to proceed with a variance request under Minnesota Rules 8820.3300, a formal request in writing in the form of a city council resolution must be submitted to the commissioner of transportation before it will be considered or reviewed. The city will then forward the resolution along with the other documentation cited in the rules for the consideration by an advisory committee on variances appointed by the commissioner of transportation. If the commissioner grants the variance it is conditioned on the city agreeing to indemnify and hold harmless from any claim or action which arises from the relaxation of the reimbursement of project development and engineering costs in excess of the 25 percent limitation.