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Council authorizes pipeline license across BNSF crossing; member urges review of state statute on crossing fees

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Summary

Little Falls approved a pipeline license and the associated $2,446 crossing permit fee for the Fourth Street Northeast project. A council member asked staff to confirm the fee calculation against Minnesota Statutes §237.045 and to avoid overpaying in future projects.

The Little Falls City Council approved a pipeline license with BNSF Railway Company for the Fourth Street Northeast project and authorized payment of a $2,446 permit fee charged by the railroad.

Public Works staff said the fee covers crossing the railroad right‑of‑way from one edge to the other and that the amount would be charged to the Fourth Street project. A council member raised a legal and fiscal question, citing Minnesota Statutes section 237.045 and noting the statute sets a base crossing fee ($12.50) with potential annual adjustment tied to a price index. That council member urged staff to verify the calculation and ensure the city pays the statutory, correctly indexed, one‑time amount rather than a higher or recurring charge.

Staff acknowledged the concern and said they had been working with the railroad but that there was not enough time to litigate or contest the fee before the project needed to proceed; staff agreed to examine the calculation for future projects.

The motion to approve the pipeline license and pay the fee was made by Mayor Zilka and seconded by Councilman Loosiergen; the motion passed.