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MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR <br />(651) 484 -2177 / FAX: (651) 484 -4538 Joel R. Hanson <br />Email: cityhall @ci.Iittle- canada.mn.us <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: March 3, 2000 <br />RE: MNDOT Turn -back Agreement <br />Attached is a proposed agreement between the Minnesota Department of Transportation <br />(MNDOT) and the City relative to the turn-back of various frontage roads from the State to the <br />City. As you may recall, this topic has been discussed for a number of years starting when <br />MNDOT tried to turn Viking Drive between Rice Street and 35E back to us without any funding. <br />We have negotiated with them for a number of years and arrived at a dollar contribution on their <br />part that I feel is the maximum we can attain. The dollar contribution is based on $70,000 per <br />mile for reconstruction of the roadway and $40,000 per mile when a roadway was considered to <br />be in reasonable condition. The revenue breakout is as follows: <br />Viking Drive (Rice to Flower — 1 mile) $70,000 <br />Viking Drive (McMenemy to Edgerton —'/s mile) 35,000 <br />Viking Drive (Edgerton to east —'/a mile) 15,000 <br />Savage Lane (Sextant to north —1/3 mile) 15,000 <br />Gilanderi Lane 10.000 <br />Total $145,000 <br />Because those amounts were negotiated back in 1995, MNDOT did agree to increase them to <br />$160,000 as of last year. The additional money totaling the $202,197 figure comes from costs <br />incurred on our 1999 Viking Drive project between McMenemy and Edgerton associated with <br />reconstructing a fiber optic cable MNDOT had placed in this area. (They fully reimbursed us for <br />this project.) <br />From all the research I have been able to do, this appears to be a fair arrangement based on <br />MNDOT policies. My only concern is the time it has taken us to obtain this agreement has <br />effectively reduced the amount of the contribution by the interest earnings we could have had on <br />this money over the past year. I have not aggressively pursued that issue with MNDOT. If the <br />Page 13 <br />