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LAKE ELMO CITY COUNCIL MINUTES 11-20-84 PAGE 4 State Aid Street. Local streets or County Roads cannot serve as termini. Also, the street should provide a "through" function and not just provide local access. The Engineer estimates that the City could be receiving an additional $7,000 in annual construction allotments and $1,125 in annual maintenance funds if the 0.75 miles could be assigned. The Council could designate a street now if it is 0.75 miles or less in length or choose a longer street and wait until the MSA mieage increases to that length. Rules for requesting these additions have recently been changed. These requsts must be submitted by March 1, 1985 to be figured into the 1986 allotments. Some suggestions from the City Engineer for MSA designation are: 1. 39th Street from CSAH 17 to TH 5 (presently non-existent). This route could relieve some of the congestion at the TH 5 and CSAH 17 intersections. (0.46 miles) 2. 36th Street and Layton Avenue from CSAH 17 to TH5. Layton Avenue is in need of reconstruction. (0.31 miles). 3. Kimbro Avenue and 43rd Street from 47th Street to CSAH 17. This street would advance the City's goal of eventually paving all of the existing gravel roads. (.087 miles). The Council discussed the above three options. Although no immediate action needs to be taken, it is the consensus of the Council to highlight this subject in the City Newsletter for comments from the public, and continue this discussion at a future meeting. E. Other A. 201 Financing The Council reviewed the memo from the City Engineer dated November 20, 1984 in which he addresses the construction costs for the 201 Program. The memo indicates there is a substantial difference between the present estimated construction cost shown on the Engineer's Estimate for all parts ($1,403,945) and the original construction cost estimated in the Facilities Plan in 1981 and subsequently shown in the grant ($360,000). After a review of the Facilities Plan and a comparision to the Engineer's Estimate, it is clear that the increase is not due to any one factor but the additive effect of several factors. The two primary factors appear to be that more work needs to be done than anticipated in the Facilities Plan and the unit prices for the work are higher than anticipated in the Facilities Plan. The City of Lake Elmo should seek a grant amendment after bids are received in accordance with present rules and regulations; however, it seems apropriate at this time to alert the Agency to this possibility now based upon the Engineer's Estimate. Since general obligation bonds must be sold to finance the local share and interim construction . financing, the City should seek a preliminary determination from the Agency as to the liklihood of the grant being amended to cover these additional costs. This increase in the estimated project cost affects the amount to be assessed and the interim financing (bonding) for the Project.