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CR 91-115 Mainstreet Variance - Hold Harmless Cause '.'" . \ I o t ~ ! I ( o p May 16, 1991 council Report: 91-115 MAINSTREET VARIANCE HOLD HARMLESS CLAUSE Proposed Action. Staff recommends the following motion: Move that Council adopt Resolution 91-70, Resolution for Adoption of "Hold Harmless" Clause As Condition to Variance -Mainstreet Project 90-04 (S.A.P. 132-141-06). Overview. At it~ May 15, 1990, meeting, Council adopted a resolution requesting a varJ.ance from State Aid standards concerning road width on Mainstreet. In.a letter dated July 10, 1990, Commissioner Leonard Levine of the .:Minnesota Department of Transportation granted the variance conditional upon receipt of an additional Council resolution that in effect would add a "hold harmless" clause to the variance. Primary Issues to Consider. . o Is the variance needed? The variance is needed because MN/DOT has not wavered from its original requirements of a minimum 48 foot street width with two traffic lanes and two parking lanes between intersections. The requirement fora minimum 36 foot, two traffic lanes and no parking at intersection nodes also still stands. o Is it prudent for the City to indemnify the state of Minnesota? The League of Minnesota Cities has taken up the cause in opposition to MN/DOT'srulerequiringthe"hold harmless" featui:'ein variances. In particular, the League has had concerns about the rule as it extends immunity to the state as a whole. A public hearing was conducted and resulted in no changes in the MN/DOT rule., The City is therefore compelled to adopt the rule if it wishes to have a Mainstreet Project. Supporting Information. o Letter from Commissioner Levine granting variance o Letter from League of Minnesota cities o Resolution 9l-70 .J~~ Engineering Superintendent ." "-. ~(~\~NE~SO'4 'tg., ~ ~ ::0 t! ~ ~ \, ~<f r OF T\\Il-~ Minnesota Department of Transportation Transportation Building, SL Paul, MN 55155 July 10, -1990 Robert Toddie Hopkins City Engineer TKDA and Associates 2500 Am. Nat'l Bank Building st. Paul, MN 55101 In reply refer to: Request for Variance, S.A.P. 132-341- CITY OF HOPKINS RECEIVED JUL 1 1 1990 T.K.D.A. ~~~ g ~~~7;;RU . .QJ!.QY.f;1L- CJ HW1lfRG DM!lll1-- QJ:!!~~ r.l.!,l,mE2!:E~_ Q!..illL- !2!::m::~_ .Q..f.:s~'.E1L fHi!!ED3_ ~y~_ L,,0jf;2~-...B.tE1nB 'J~~IIl"~ G;tl';''';7.i~ o M.,,(,':;~~Tto\; Ci 1Il1'l'$" _--.J Dear Mr. Toddie: . Upon the advice ,of a Variance Committee appointed expressly for the purpose of recommending to me the validity of the City of Hopkins' request for a variance from Minnesota Rules 8820.99l2, so as to permit a street width of 46 feet, two traffic lanes and two parking lanes, instead of the required minimum of 48 feet, two traffic lanes and two parking lanes between intersections and to permit a. street width of 32 feet, two traffic lanes and no parking lanes, instead of the required minimum of 36 feet, two traffic lanes and no parking lanes, at intersection node areas, I hereby GRANT the,variance. The variance is conditional upon receipt of a resolution by the city Council of Hopkins that indemnifies, saves, and holds harmless the state of Minnesota and all its agents and employees of and from any and all claims,' demands, action, or causes of actions of any nature or character arising out of or by reason of, in any manner, the'reconstruction of MSAS341 (Main Street) from Shady Oak Road to 5th, Avenue street in any other manner than as in accordance with Minnesota Rules 8820.9912 and further agrees to defend at their sole cost and expense any action or proceeding commenced for the purpose of asserting any claim of whatsoever character arising as a result of the granting of this variance. .X:1Y, . LEONAJD ~1: LEVINE Commi sioner An Equal Opportunity Employer '. ~ . j.\ 183 University Ave. East St. Paul, MN 55101.2526 (612) 227.5600 (FAX: 221.0986) League of Minnesota Cities July 25, 1990 TO: city engineers Sarah Hackett ,~ Legislative Analyst FROM: RE: MNDOT proposed rule on variance liability On July 9, 1990 (state Register publication) the Minnesota Department of Transportation proposed rule changes which pertain primarily to Rule 8820. In particular, this rule would change the legal responsibility of municipal state-aid streets which are granted variances. It would require a city receiving a variance to assume full legal responsibility for the construction changes allowed by the variance. Copies of the proposed rule and the "statement of facts establishing need and reasonableness of rules" (SONAR) are enclosed for your review. ' Under the ,proposed rule, cities would be required to pass a resolution exempting the state from legal responsibility before the commissioner of transpo~tation would give final approval for the variance. The state would retain its funding agreement. The resolution would have to state that any claims against the road due to the variance would be the sole financial responsibility of the city. The proposed rule states: "The commissioner shall require a resol~tion by the recipient of the variance that indemnified, saves, and holds harmless the state and its agents and employees of and from claims, demands,actions, or causes of action arising out of or by reason of the granting of the variance. The recipient of the variance shall further agree to defend at its sole cost and expense any action or proceeding begun for asserting any claim of whatever character arising as a result of the granting of the variance." Ir- ,: 'A' The League does not dispute the language of the rule which proposes to hold employees and agents of the state harmless from legal prosecution in the case of a variance the state grants. The variance - OVER- . . :'. . J\ committee, which includes city officials as members, is an example of an ,agent of the state which would gain immunity from prosecution under this rule. This is the body which receives requests for variances from cities. As many cities know from actual experience, variances are carefully studied and judiciously granted. The League, however, has concerns about the advisibility of the portion of the rule which extends this legal immunity to the state as a whole. The Commissioner of Transportation would continue to have final review authority for the exceptions which the variance committee grants. Such oversight authority would seem to negate the need for the state to abandon shared responsibility for roads constructed with state funds. Another concern is that the portion of the proposed rule which shifts legal responsibility would apply regardless of the extent of the variance granted. The rule would treat small and minor alterations to existing rules the same as substantial exceptions from the state-aid requirements. The 30-day comment period to request ,a public hearing on the rule will end on August 9, 1990. A minimum of 25 people must request the public hearing. To request a hearing, on this rule, submit your name, address, th~ portion of the rule you wish to address the reason for the request, and any changes proposed to,: Dennis Carlson, Director, office of State Aid, 420 Transportation Building, st. Paul, MN 55155 If no hearing is requested, these rul~ changes will be adopted automatically. The League is interested in your reactions to this rule. Please notify Sarah Hackett, LMC legislative analyst, if you have concerns about this proposed rule or are requesting a MNDOT hearing. 7 ..&:~ 2~ . . ..- .' il. .- '"}: , --.', CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO. 91-70 RESOLUTION FOR ADOPTION OF "HOLD HARMLESS" CLAUSE AS CONDITION TO VARIANCE - MAINSTREET PROJECT 90-04 (S.A.P. l32-141-06) Whereas, the City Council of the City of Hopkins, Minnesota, requested a variance concerning street width during the reconstruction of Mainstreet, and Whereas, such variance was granted by the Commissioner of Transportation's office on July 10, 1990, conditional upon the City Council adoption of a resolution that indemnifies the state and its agents and employees, NOW, THEREFORE, BE IT RESOLVED BY the City Council of the City of Hopkins, Minnesota: The following language shall be a condition to the Mainstreet variance granted July 16, 1990: "The City of Hopkins hereby indemnifies, saves, and holds harmless the state and its agents and employees of and from claims, demands, actions" or causes of action arising out of or by reason of the granting of the variance. The recipient of the variance shall further agree to defend at its sole cost and expense, any action or proceeding begun for asserting any claims .of whatever character arising as a result of the granting of the variance." " Adopted by the city Council of the City of Hopkins this 2lst Day of May, 1991. By Nelson W.Berg, Mayor ATTEST: James A. Genellie, City Clerk ij