The URL can be used to link to this page

Home My WebLink About5B Scott County Joint Powers Agreement Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: MARCH 13, 2017 AGENDA #: 5B PREPARED BY: LARRY POPPLER, CITY ENGINEER/INSPECTIONS DIRECTOR PRESENTED BY: LARRY POPPLER AGENDA ITEM: CONSIDER APPROVAL OF A JOINT POWERS AGREEMENT WITH SCOTT COUNTY WITH RESPECT TO PROPERTY LOCATED ALONG CSAH 21 BE- TWEEN WEST AVENUE AND DULUTH AVENUE DISCUSSION: Introduction The purpose of this agenda item is to consider a joint powers agreement with Scott County related to property purchases over five parcels located along CSAH 21 between West Avenue and Duluth Avenue. This property is currently undeveloped as 5 separate properties, but there is a stormwater pond, county highway, trail, and light poles located on the property without sufficient easements. As shown below these property issues date back to the 1980’s. The City and the County have been working with the property owners literally for decades to address these issues and to obtain the necessary ease- ments. We have been successful on some properties and unsuccessful on others. History As noted above, the property is undeveloped but there is a long history on this site. To the best of our knowledge, below is a timeline of events for these parcels: 1980’s County acquired storm sewer and right of way easements on this property for the CH 21 construction. It does not appear that the easements were recorded but we do not know the reason. 1997 City sent easement document to property owner for a planned stormwater pond to be constructed on the site as a part of the West Avenue Reconstruction Project. 1998 Property owner signed easement document and returned it to the City. We believe that the easement document was sent to County for recording, however the document was never recorded. We can- not verify whether and why these things did or did not happen. City later opened bids for the West Avenue Reconstruction Project and during the summer of 1998 the stormwater pond was constructed on the property. 1999 City discovered that the easement document was never recorded. The City then attempted to secure the easement from the property owner, but the property owner had sold the property to someone else. City attempted to secure easement with new property owner, but was unsuccessful. 2 2001 The City received an application for a preliminary plat and PUD for the development of 32 townhouse units on this property. Applica- tion was eventually withdrawn. 2003 The City amended the Comprehensive Land Use Plan to designate this property as C-TC (Town Center). This remains the current land use designation 2008 The City Council heard a presentation on a concept plan for a 57- unit senior housing building on 3 lots within this site. No additional applications were filed. 2010 Property owners cut down trees and begin grading the site without permits. City issued stop work order. City met with property own- ers to discuss issues including tree removal, grading, access to County Highway 21, and City/County improvements on the property 2010- 2017 Multiple contacts with property owners had been unsuccessfully at- tempted to negotiate easements and associated costs. In 2015, Scott County working with the knowledge of the city staff successfully acquired right of way on one of the five properties. Earlier this year, the County successfully acquired right of way on another two parcels. At this point, only two parcels have not reached successful negotiation on right of way or easement. Scott County has provided a recent offer for the final two parcels. Current Circumstances In order to finalize this matter, Scott County has offered to secure easements for the City and County by mutual agreement with the property owners or by condem- nation if necessary. The Joint Powers Agreement stipulates costs associated with this acquisition. Considering the extended negotiation with the property owners over many years, it is likely that condemnation of the property is the most likely outcome. Conclusion City staff recommends approval of the Joint Powers Agreement with Scott County to settle this matter. ISSUES: The cost allocation was created based on appraisals performed by the County and easement area necessary for both County and City. As with any property acquisi- tion, if costs are not negotiated they are subject to review by condemnation com- missioners. An appeals process exists if the City/County or property owners are not satisfied with the commissioner’s ruling on value. Any increase in value would be brought to the City Council as a separate approval. Scott County is legally responsible for documenting easements and deeds through their land records office. When the City or any other party secures an easement, or deed they must record it with Scott County Land Records. When an easement or deed is recorded by the City the following steps are performed. 1. Document is prepared 2. Document description/language is checked by the City Staff or City Attorney 3. Multiple copies are signed by the property owners 3 4. City retains one original copy until it is officially recorded and one is brought to Scott County for recording. A receipt is received. 5. Scott County processes the easement for a fee. Once an easement is rec- orded by Scott County, an official seal is placed on the document and it is given a county record number. Scott County sends a copy of the final sealed document back to the City, generally within one month of submission. 6. City retains a sealed version of the document and it is filed with a City num- ber and it is recorded on a master index sheet. 7. Monthly, staff review files of easements which were taken to Scott County and will check their status if sealed versions have not been mailed back to the City. While this is the current process, several of these steps were not in place in 1998 when the City easement was taken to Scott County. There is no perfect system, but since the steps above were instituted the City has not had any issues related to recording easements or deeds. The City secures 10-20 easements or deeds each year. These are just the easements or deeds secured by the City. Many other private easements or real estate transactions are separate and not tracked by the City, but can be found at Scott County in the Land Records Office. FINANCIAL IMPACT: The cost allocation as a part of the Joint Powers Agreement assigns costs based on a formula for securing the necessary easements/right of way by area. The City needs specific easement area and the County needs specific right of way area. The agreement also provides a formula for splitting costs if future expenses are necessary based on negotiation or condemnation. The estimates provided in the cost share agreement are for the purposes of assigning percentages to specific easements and right of way secured. The cost agreement does not estimate ad- ministration, legal, appraisals, commissioner expenses, etc. It should be noted that the County is undertaking the task of securing the easements utilizing in- house staff without charging the City for this work, however certain experts may need to be hired to support offers made to property owners. For those items that are settled, the city costs are $9,352.50 and the county costs are $47,852.50. The offer that has been tendered for the remaining two parcels by the county on behalf of both parties is $145,000. It appears that this final proposal has not been accepted so condemnation may be necessary. Costs for these acquisitions will be drawn from General Fund Reserves. The bal- ance in this account is sufficient to complete these transactions at long last. ALTERNATIVES: 1. Approve a Resolution Approving a Joint Powers Agreement with Scott County with Respect to Property along County Highway 21 between West Avenue and Duluth Avenue. 2. Deny this item for a specific reason and provide staff with direction. 3. Table this item until some date in the future. RECOMMENDED MOTION: A motion and a second for approval of Alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 17-___ APPROVAL OF A JOINT POWERS AGREEMENT WITH SCOTT COUNTY WITH RESPECT TO PROPERTY LOCATED ALONG CSAH 21 BETWEEN WEST AVENUE AND DULUTH AVENUE Motion By: Second By: WHEREAS, The City and Scott County are acquiring right of way and easements for property along County Highway 21 between West Avenue and Duluth Avenue; and, WHEREAS, Scott County proposes to be the lead agency to secure both City and County easements/right of way; and, WHEREAS, A Joint Powers Agreement was prepared to assign responsibility and costs. 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 Mayor and City Manager are hereby authorized to sign the Joint Powers Agreement with Scott County with respect to property located along County Highway 21 between West Avenue and Duluth Avenue. 3. Costs assigned through the Joint Powers Agreement including property acquisition, administration, legal, or other experts are hereby authorized up to $110,000. 4. Costs assigned through the Joint Powers Agreement will be drawn from General Fund Reserves. Passed and adopted by the Prior Lake City Council this 13th day of March, 2017 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager 1 JOINT POWERS AGREEMENT THIS AGREEMENT made and entered into as of this ______ day of ______________, 2017, pursuant to Minn. Stat. § 471.59 and Minn. Stat. § 117.016, by and between the County of Scott, (hereinafter referred to as the “County”), and the City of Prior Lake (hereinafter referred to as the “City”), political subdivisions and municipal corporations, organized and existing under the laws of the State of Minnesota. WITNESSETH: WHEREAS, City is acquiring an easement for drainage and utility purposes with an area of 15,541 square feet for its existing storm water pond on Parcel 1 as shown on the attached Exhibit “A”, hereinafter referred to as (“Existing Storm Water Pond”); and, WHEREAS, the City and County are acquiring new right of way by easements for highway purposes and access control with a total area of 13,360 square feet on Parcels 1 – 5 as shown on the attached Exhibit A”, hereinafter referred to as (“New Right of Way”); and, WHEREAS, the City and the County are acquiring an easement for drainage and utility purposes with an area of 12,121 square feet for future expansion of the storm water pond on Parcels 1 & 2 as shown on the attached Exhibit “A”, hereinafter referred to as (“Future Pond Needs”); and, WHEREAS, County has engaged an independent appraisal firm, which has completed market value appraisals in compliance with applicable laws and regulations for acquisition of various types of easements for the Existing Storm Water Pond, New Right of Way and Future Pond Needs on Parcels 1 – 5, which is summarized on the attached Exhibit “B”; and, WHEREAS, the storm water pond and the new right of way are both located within the municipal boundaries of the City; WHEREAS, the existing storm water pond along with its future expansion and the new right of way are on the same Parcels 1 – 5; and, WHEREAS, the parties hereto propose to acquire new right-of-way by easements for highway purposes or in fee and easements for drainage and utility purposes for the existing storm water pond and its future expansion on Parcels 1 – 5 which are held both individually and by abutting common fee owners; and, WHEREAS, the City and the County recognize that it is efficient to coordinate the objectives of both parties to reduce cost and avoid duplication of effort. 2 NOW THEREFORE, in consideration of the mutual promises and agreements contained herein, the parties hereby agree as follows: 1. The parties hereto designate the County as lead agency to acquire right-of-way by easements for highway purposes or in fee and to acquire easements for drainage and utility purposes either by negotiation and mutual agreement or other means, including but not limited to, by condemnation proceedings under the rights of eminent domain, for both the City and County’s needs recited above and as shown on the attached Exhibit “A”. 2. City and County shall share the total acquisition costs and other affiliated costs associated with or resulting from the Existing Storm Water Pond; Future Pond Needs; and New Right of Way as allocated by the percentages noted on the attached Exhibit “B”. 3. The parties hereto acknowledge that for any claims or costs which are not a part of the current acquisition and its affiliated costs for the Existing Storm Water Pond, Future Pond Needs and New Right of Way, the responsible party shall bear 100% of the claims or costs. 4. City shall reimburse the County for the City’s share of the total acquisition costs within 30 days of the receipt of an invoice(s), either by direct settlement by negotiation and mutual agreement; by condemnation proceedings under the rights of eminent domain; or by other actions. 5. Upon execution of instruments by settlement(s) by mutual agreement or by filing of a final certificate under condemnation proceedings, County shall deliver to the City either by an instrument or by an assignment a recordable instrument granting or assigning the City’s perpetual easements for drainage and utility for the Existing Storm Water Pond as shown on the attached Exhibit “A”. 6. The parties hereto agree that the Future Pond Needs are designated and reserved for County Highway 21. In the event that the City uses the property acquired for Future Pond Needs, or any part thereof, at any future time for other storm water ponding needs, including by development under its development authority, the City shall reimburse the County for acquisition costs, severance damages, if any, and administrative costs associated with the Future Pond Needs actually incurred by the County in an amount proportionate to the property used by the City. 7. This agreement shall terminate on the date of delivery or filing of record instruments or the filing of record final certificate under condemnation proceedings for all identified acquisitions in the Office of County Recorder for Scott County, Minnesota provided that such termination is conditional upon the completion of all mutual promises and agreements contained herein. 3 8. Indemnification. Beyond the activities contemplated in this agreement, each party is responsible for its own acts and omissions and the results thereof to the extent authorized by law. Each party shall indemnify the other party and hold it harmless from and against any and all judgments, claims, damages, costs and expenses, including a reasonable amount as and for its attorney’s fees paid, incurred, or for which it may be liable, resulting from the party’s negligent or intentional acts or omissions, or the negligent or intentional acts or omissions of the party’s subcontractors, employees, or agents. The Parties’ liability is subject to the limits applicable to a municipality as set forth in Minn. Stat. Ch. 466. 9. Audit Disclosure and Data Practices. The books, records, documents and accounting procedures and practices of the parties are subject to examination by th e County, City and either the Legislative Auditor or the State Auditor for a period of six (6) years after the effective date of this Agreement. This Agreement is subject to the Minnesota Government Data Practice Act, Minnesota Statutes Chapter 13 (Data Practices Act). All government data, as defined in the Data Practices Act Section 13.02, Subd 7, which is created, collected, received, stored, used, maintained, or disseminated is subject to the requirements of the Data Practice Act. All subcontracts entered into by the parties in relation to this Agreement shall contain similar Data Practices Act compliance language. 10. Conflicts. No salaried officer or employee of the City and no member of the Council, or Commission, or Board of the City shall have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders the agreement void. THIS AREA LEFT BLANK 4 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed, as of the date first written above, intending to be bound thereby. CITY OF PRIOR LAKE COUNTY OF SCOTT By: ___________________________ By: __________________________ Kirt Briggs, Mayor Michael L. Beard, Chair, City of Prior Lake City Council Scott County Board of Commissioners Dated: ____________________, 2017 Dated: ______________________, 2017 Attested to: Attested to: By: ___________________________ By: __________________________ Frank Boyles Gary Shelton Prior Lake City Manager Scott County Administrator Dated: ____________________, 2017 Dated: ______________________, 2017 Approved as to form: Approved as to form: ________________________ __________________________ Sarah Schwarzhoff Jeanne Andersen Attorney for the City of Prior Lake Scott County Asst. County Attorney Ex h i b i t B Co s t Al l o c a t i o n Ci t y : R/ W Ac q u i s i t i o n (5 0 % of Pa r c e l 5) $ 0 . 0 0 $0 . 0 0 $9 , 3 5 2 . 5 0 $9 , 3 5 2 . 5 0 Ex i s t i n g Po n d on Pa r c e l 1 = 10 0 % $3 7 , 9 2 0 . 0 0 $3 7 , 9 2 0 . 0 0 Fu t u r e po n d i n g ne e d s on Pa r c e l s 1 & 2 = 50 % $2 3 , 2 2 4 . 0 0 $2 3 , 2 2 4 . 0 0 Se v e r a n c e Da m a g e s to Re m a i n i n g Pa r c e l s 1 & 2 ( 15 , 5 4 1 sf / 27 , 6 6 2 sf ) = 56 % Severance Damages: 56% Tr e s p a s s Da m a g e s , if an y , on Pa r c e l 1 = 10 0 % Trespass: 100% Ad m i n i s t r a t i v e (A p p r a i s a l s , Le g a l , et c . ) by pe r c e n t a g e = 42 % Administrative: 42% Ac q u i s i t i o n Pe r c e n t a g e s by Pa r c e l : Ci t y 0% Ci t y 0% C i t y 50 % C i t y 10 0 % C i t y 50 % $7 0 , 4 9 6 . 5 0 A c q u i s i t i o n : 42% Co u n t y : R/ W Ac q u i s i t i o n (1 0 0 % of Pa r c e l s 1, 2, 3 & 4 & 50 % of Pa r c e l 5) $ 2 7 , 6 6 4 . 0 0 $3 8 , 5 0 0 . 0 0 $ 9 , 3 5 2 . 5 0 $ 7 5 , 5 1 6 . 5 0 Fu t u r e po n d i n g ne e d s on Pa r c e l s 1 & 2 = 50 % $2 3 , 2 4 4 . 0 0 $2 3 , 2 4 4 . 0 0 Se v e r a n c e Da m a g e s to Re m a i n i n g Pa r c e l s 1 & 2 ( 12 , 1 2 1 sf / 27 , 6 6 4 sf ) = 44 % Severance Damages: 44% Ad m i n i s t r a t i v e (A p p r a i s a l s , Le g a l , et c . ) ‐ by pe r c e n t a g e = 58 % Administrative: 58% Ac q u i s i t i o n Pe r c e n t a g e s by Pa r c e l : Co u n t y 10 0 % Co u n t y 10 0 % C o u n t y 50 % C o u n t y 0% C o u n t y 50 % $9 8 , 7 6 0 . 5 0 A c q u i s i t i o n : 58% $1 6 9 , 2 5 7 . 0 0 Acquisition = 100% Es t i m a t e d To t a l Ac q u i s i t i o n Co s t by Ap p r a i s a l an d by Se t t l e m e n t s to Da t e Co s t Al l o c a t i o n Pa r c e l s 1 & 2: Es t i m a t e d R/ W Ac q u i s i t i o n Co s t by Ag e n c y Ap p r a i s a l Pa r c e l s 3 & 4: R/ W Ac q u i s i t i o n Co s t by Se t t l e m e n t Pa r c e l 5: R/ W Ac q u i s i t i o n Co s t by Se t t l e m e n t Es t . DU E Ac q u i s i t i o n Co s t by Ag e n c y Ap p r a i s a l fo r Ex i s i t n g Po n d Es t . DU E Ac q u i s i t i o n Co s t by Ag e n c y Ap p r a i s a l Fu t u r e Po n d Ne e d s Es t i m a t e d To t a l Ac q u i s i t i o n Co s t Ci t y : Es t i m a t e d To t a l Ac q u i s i t i o n by Ap p r a i s a l s an d Se t t l e m e n t s to Da t e / To t a l Ac q u i s i t i o n by Pe r c e n t a g e Ex c e p t Ad m i n i s t r a t i v e , Se v e r a n c e an d Tr e s s p a s s Co u n t y Es t i m a t e d To t a l Ac q u i s i t i o n by Ap p r a i s a l s & Se t t l e m e n t s to Da t e / To t a l Ac q u i s i t i o n by Pe r c e n t a g e Ex c e p t Ad m i n i s t r a t i v e an d Se v e r a n c e Cost Allocation by Percentage