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crass = <br />Mark E. Bernhardson. City Administrator <br />John R. Gerhardson, Public Works Director ai <br />Data$ October 22. 1987 <br />Subjects County Road 15 - Orono Couts <br />!t <br />92487.tln <br />ap <br />Recently, the City of Orono received information from Hennepin County , <br />Department of Transportation regarding Orono's share of the costs for the i <br />rehabilitation of County Road 15 through Navarre. <br />The cost estimate is the engineer's estimate only as the bidding <br />i <br />process has not been completed, therefore, the estimate is subject to <br />change. 1 <br />Orono's share of the costs is: $488,353.76 <br />During all past discussions, it has always been considered to <br />Orono's share of the cost from the monies received from the NSA account <br />(Municipal State Aid). 1 <br />The NSA funds will pay $472,989.70 leaving a balance of $15,364.00. ' <br />The NSA account is funded from the tax on gasoline. At this time, (r <br />Orono's annual allotment is approximately $177,000.00. Currently& there is <br />a balance in the fund of i349,500.00. <br />However, because this project is not on the City's NSA system, there i <br />is a penalty for using those funds off the system. The penalty at this fj <br />date is 5% or $5,000 for each $100,000.00 spent off the system. This t <br />penalty is in effect for tan years resulting 1 total penalty of <br />$210000.00. ,t <br />s' <br />The City has funded past projects off the City u NSA system such as <br />Tanager Bridge replacement in i979, temporary traff.Le signal at Highway 12 <br />and County Road 6 in 1981 and McCully Road in 1980. All of the above <br />projects were constructed at a time when the penalty was just under 31• <br />therefore, the impact of the penalty was not as severe. <br />It should be noted that if we do not expend funds annually. a $1 <br />penalty is invoked on all municipalities and any funds not used after two <br />years, there is an additional 5• penalty. However, those penalty amounts <br />are distributed to all communities soth is the 5% In not <br />a real <br />number. <br />omay be for your information, the following projects <br />review <br />and approval in the near future and in which NSA funds will be useds <br />Bridge replacement on old crystal. Bay Road south of Highway 12 over <br />Burlington Northern Railroad. <br />Permanent traffic signal at highway 12 and County Road G. <br />Traffic signal installation at willow Drive and f;ighway 12. <br />Pry.posed County Road 116. <br />Frointage road or roads a long highway 12 from Drown Road west to Old <br />Crystal [gay Read. � <br />E <br />,m <br />