The reconstruction and expansion of County State Aid Highway (CSAH) 42 has been programmed by Scott County as part of their Transportation Improvement Program (TIP) in 2020. A portion of the proposed reconstruction is within City of Shakopee municipal limits and thus the city is required to participate in the cost of the reconstruction project per the county's funding policy.

The proposed reconstruction project would expand CSAH 42 from two lanes of traffic to four lanes of traffic between CSAH 17 in Shakopee and CSAH 83 in Prior Lake. The proposed project will also provide pedestrian trails and expand stormwater treatment for the roadway.

Following Council approval to proceed with a Construction Cooperative Agreement, city staff has been coordinating the details of the agreement with Scott County staff. The Construction Cooperative Agreement and cost participation table are attached. The cost participation table has been updated to reflect bid prices received by Scott County in spring 2020.

The City of Shakopee 2020 CIP has budgeted $1,420,000 for this project participation. The proposed city participation based on the bid results is $926,191.14 and falls within the budgeted amount.

It should also be noted that the city expects to incur these expenditures that may be financed temporarily from sources other than bonds, and reasonably expects to reimburse itself for such expenditures from the proceeds of tax-exempt bonds, the debt service of which is expected to be paid from property taxes, special assessments, utility fees, or any other available funds;