04-24-1995 Council Packet - Laserfiche WebLink

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COUNCIL MEEHNC REQUEST FOR COUNCIL ACTION APR 2 4 1995 D»TC: ITEM NO: ^ Department Approval: Name Ron Moorse Title Citv Administrator 0 Administrator Reviewed:Agenda Section: City Administrator’s Report Item Description: Highway 12 Safety Improvement Project Background The Cities of Orono and Long Lake have worked with Mn/DOT for several years to plan a safetv improvement project on Highway 12 which includes a stop light at the intersection of Willow Drive and Highway 12. Through a lack of communication the City Council was not kept up-to-date on the project costs, which resulted in serious concerns by the Council when they were advised of project costs substantially higher than anticipated. At its March 28th meeting the Council directed that Mn/DOT be approached regarding reducing the city’s share of the project costs prior to the city’s approval of the project. Cost Reductions I have attached a letter from Glenn Cook regarding updated costs for the city’s share of the Highway 12 safety improvement project. The final cost of $175,664 reflects a $52,730 reduction in the city’s share of the project costs. The majority of this reduction ($36,963) would be paid to Mn/DOT at a later time when the property north of Highway 12 develops. Source of Funding and MSA Funds Available The source of funding for the safety improvement project is MSA funds. A summary of the level of funds available in the city’s MSA fund is shown below. MSA Construction Fund Balance - January 1, 1995 Encumbrances Balance Available for Construction Less $275,(X)0 Highway 12 Balance Available - 1995 Plus $250,000 - 1996 Allocation Balance Available - 1996 $808,llili 95, 713, 275. i:ir III iiiii III438,1 250.000 $688,IIIII