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4646 Dakota Street SE
tvxsso Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: FEBRUARY 9, 2015
AGENDA#: 8B
PREPARED BY: SENG THONGVANH, PROJECT ENGINEER
PRESENTER: SENG THONGVANH
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING THE
NEGOTIATED SETTLEMENT VALUE AND AUTHORIZING THE
OFFICIALS TO MAKE OFFER TO PURCHASE INTERESTS IN REAL
PROPERTY AT THE NEGOTIATED SETTLEMENT VALUE FOR THE
MAPLE LANE, MUSHTOWN ROAD, AND PANAMA AVENUE
IMPROVEMENT PROJECT (TRN14-000001)
DISCUSSION: Introduction
The purpose of this agenda item is to seek approval from the City Council
for the negotiated settlement value and authorizing the officials to make
offer to purchase interests in real property at the negotiated settlement
value.
History
Each year the City reconstructs street segments that are scheduled for
reconstruction as part of its Capital Improvement Program (CIP) and have
exceeded their useful design life. The City uses the Capital Improvement
Program and its Pavement Management Program to plan for infrastructure
improvements and the financing for capital improvements. At its September
9, 2013 meeting the City Council adopted Resolution 13-126 authorizing
staff to prepare a Feasibility Report for the Maple Lane, Mushtown Road,
and Panama Avenue Improvement Project as outlined in the CIP.
The Maple Lane / Mushtown Road / Panama Avenue neighborhood is
considered in the report and includes improvements to Maple Acres,
O'Rourke Addition, Parts of S 11, T 114, R 22 and Parts of S 2, T 114, R
22. These properties were platted and developed in the 1950's and 1960's.
A map of the project area (Figure 1) is included in the Feasibility Report.
The proposed improvements include street reconstruction, sewer and water
construction, storm sewer, storm water quality, concrete curb and gutter,
and appurtenant work. The Feasibility Report also includes total estimated
costs, preliminary assessment amounts, and a project financing summary.
Also included in the report are design criteria, estimates and information on
watermain, sanitary sewer, storm sewer, and streets. Details on each can
be found in the Feasibility Report that was presented to the City Council on
November 12, 2014. The City Council approved the Feasibility Report per
Resolution 13-168.
On November 12, 2013, the City Council accepted the feasibility report and
scheduled the public hearing.
Phone 952.447.9800 / Fax 952.447.4245/www.cityofpriorlake.com
The public hearing was held on December 9, 2013. A second public
hearing was subsequently held on March 10, 2014 for additional
comments. The Council also ordered project plans and specifications at the
meeting.
An open house neighborhood meeting was held on May 20, 2014 to review
the proposed project design with the effected residents. Proposed impacts
and design elements were shared at this meeting for each individual
property. Locations of sanitary sewer and water services were also
reviewed with each property owner in attendance to ensure optimal
locations of hookup.
On October 13, 2014, the City Council approved the plans and
specifications and authorized advertisement for bids as well as approving
the appraised value and authorizing the officials to make offer for property
acquisition for 9 parcels. Property acquisition is necessary for installation
of utilities on Panama Avenue.
A total of 6 bids for the project were received on January 14, 2015.
Acceptance of the bids and award of the construction contract will go
before the Council on February 9, 2015.
Current Circumstances
There are a total of 13 properties that require partial property acquisition. A
total of 12 properties have accepted the offers as presented and signed the
required easements or have signed the easement and awaiting mortgage
consent. One property counteroffered with a different amount. WSB &
Associates has negotiated with the property owner with a value that was
below their counteroffer but above the original offer. The property owners
have accepted the negotiated settlement and have signed the required
easement.
ISSUES: Property acquisition on public improvement projects can be a long process.
The City is at the end of this process for this project on time for spring
construction. WSB has worked diligently to complete the task in a timely
manner. While the counteroffer is above the appraisal, the cost difference
is minor in relation to the project as a whole. If the City Council rejects the
counteroffer, additional consultant time will be necessary to start the
condemnation process for this property.
FINANCIAL The negotiated settlement value cost will add minor additional cost to the
IMPACT: overall project amount. WSB &Associates has negotiated with the property
owners on behalf of the City and the additional cost will be presented by the
City Engineer.
ALTERNATIVES: 1) Approve a resolution approving negotiated settlement value and
authorizing the officials to make offer to purchase interests in real
property at the negotiated settlement value.
2) Deny this item for a specific reason and provide staff with direction.
3) Defer this item until a future date.
RECOMMENDED Alternative#1
MOTION:
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4646 Dakota Street SE
Prior Lake,MN 55372
RESOLUTION 15-xxx
RESOLUTION APPROVING THE NEGOTIATED SETTLMENT VALUE AND AUTHORIZING
THE OFFICIALS TO MAKE OFFER TO PURCHASE INTERESTS IN REAL PROPERTY AT THE
NEGOTIATED SETTLEMENT VALUE FOR THE MAPLE LANE, MUSHTOWN ROAD,AND
PANAMA AVENUE IMPROVEMENT PROJECT (TRN14.000001)
Motion By: Second By:
WHEREAS, The City of Prior Lake, a Minnesota municipal corporation acting by and through the City
Council and is authorized by law to acquire real property ("Property") which is needed for
public use or purpose; and
WHEREAS, The City Engineer has ordered appraisals from WSB and Associates and has received
full and final appraisals for the Maple Lane, Mushtown Road, and Panama Avenue
Improvement Project, City Project#TRN14-000001 (the"Project"); and
WHEREAS, It is necessary that the City obtain title and possession to the necessary easements by
negotiation or condemnation before construction contracts may begin; and
WHEREAS, The City made offers to property owners for the Property based on the appraisal values;
and
WHEREAS, The City has reached a negotiated settlement for purchase interest in a real property for
the value as presented by the City Engineer; and
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA
as follows:
1. The recitals set forth above are incorporated herein.
2. The negotiated settlement value is hereby approved.
3. The City Manager, Public Works Director, City Engineer and City Attorney are hereby authorized to
acquire the Property required for the Project in fee or by easement, through negotiation or condemnation
and to make offers to purchase interests in real property at the negotiated settlement value as presented
by the City Engineer for the Maple Lane, Mushtown Road, and Panama Avenue Improvement Project,
City Project#TRN 14-000001.
PASSED AND ADOPTED THIS 9th DAY OF FEBRUARY 2015.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ❑ ❑ ❑ ❑ ❑
Nay ❑ ❑ ❑ ❑ ❑
Absent ❑ ❑ ❑ ❑ ❑
Abstain ❑ ❑ ❑ ❑ ❑
Frank Boyles, City Manager