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March 19, 2015 Staff Report Page 4 Rob Hall, Crow Wing County, talked about the roads that the County is proposing to turn back to the City. The roads include CSAH 11 from the bypass west; C.R. 112 south of the bypass, Highway 371 from 168 to 112. Rob Hall explained that the City established an estimate for the types of improvements they wanted to see on these roads if they are turned back to the City. The County in turn established an estimate on what it would cost to build if the County kept the roads. The County used an average of the two numbers to determine the amount of money it would give to the City per road. Rob Hall explained that the County’s approach is to give the City an agreed upon amount of money in a lump sum for accepting the roads. The City could then use the money to do the work that it wants to do on the roads. The amount of money that the County is proposing to give the City for the three roads is 5.6 million dollars. Rob Hall reviewed the timing of the road and money exchange between the City and the County. The following are assumptions by the County: • A cost share/turnback agreement is entered into between the City and County in 2015 • The estimated payment to the City for CSAH 11 and CR 112 is $894,500 (the City’s interchange obligation of $558,000 already being deducted) • The 371 segment will be turned back to the City with a $4.2 million lump sum payment • The current schedule would have the turnbacks occurring in July of 2018 Mayor Sjoblad questioned whether the City is obligated to take the roads. Rob Hall stated that the County has statutory authority to turn back roads to the City. City would still be responsible for the 9% cost share of the interchange if CSAH 11 was not turned back to the City. Rob Hall stated that if the County kept Hwy. 371 they wouldn’t do anything with the road for about 10 years. If the City accepts the turnback, it would have much more control of the road. The length of road (Hwy. 371) being turned back to the City is 2.8 miles. The amount of money that the County is proposing to pay the City for Highway 371 includes a sidewalk on one side of the road. Rob Hall explained that there is a 20% contingency and inflation included in the numbers. Mayor Sjoblad stated that he is concerned about future maintenance costs for the turned back roads. Tim Houle explained that the new Highway alignment will be dissecting the City’s spray irrigation field. He stated that MnDOT has stated it would pay for a temporary solution to the spray irrigation fields, but Mayor Sjoblad would