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RECEIVED JUN 6 2005 DRAFT CASS COUNTY COMMISSION Cass County Highway 17 Memorandum of Agreement City of West Fargo and Cass County Government. Background: Cass County Highway 17 is currently owned and maintained by Cass County Government from the Sheyenne River crossing north ofI-94 south to State Highway 46. Funding formulas for distribution of the State Highway Distribution Funds and Federal highway funds in North Dakota are based on the premise that county highways have traditionally been turned over to the larger Cities as the land adjacent to the highways is annexed. These formulas are population based resulting in increased City funding and decreased County funding as annexations take place. In recent years considerable residential development has occurred adjacent to Highway 17 south of West Fargo. This development is creating a need for improvements to Cass 17. To date, West Fargo has annexed the majority of the land adjacent to Cass 17 on the west side ofthe Highway from 32nd Avenue to 52nd Avenue. In June of2005 West Fargo intends to annex the east side of Highway 17 from 40th to 52nd Avenue. With these planned annexations, West Fargo will have annexed the vast majority of the non agricultural property between 1-94 and 52nd Avenue South. It is anticipated that any property currently zoned and used as agricultural property in this area will be annexed by the City of West Fargo in the foreseeable future as the land develops. Counties have no authority to levy special assessments for highway improvements within an incorporated area. Provisions of Agreement: Highway 17 (Sheyenne Street) West Fargo will assume ownership of Cass County Highway 17 from the Sheyenne River north of 1-94 to a point 600 feet north of section line near 52nd Avenue. The transfer of all ownership, liability and maintenance responsibility shall occur on June 30, 2005 except winter maintenance and mowing responsibility will transfer on May 1, 2006. In order to allow West Fargo to make a more orderly transition, Cass County will continue to provide winter maintenance and mowing until May 1, 2006, but ownership and all other responsibility transfers on June 30, 2005. Cass County will retain ownership of Highway 17 from a point 600 feet north of section line near the 52nd Avenue intersection to the south unless and until annexation takes place by West Fargo south of 52nd Avenue. This will include ownership of the intersection and approaches to the intersection. Cass County plans to complete 2006/2007 improvements to the 52nd Avenue intersection. West Fargo agrees to fund ~ of the cost of future