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HomeMy WebLinkAbout5I Property Easement Resolution 17-029 Amendment Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: MARCH 04, 2019 AGENDA #: 5I PREPARED BY: MICHAEL PLANTE, CITY MANAGER PRESENTED BY: MICHAEL PLANTE AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AMENDING RESOLUTION 17-029 WITH RESPECT TO ACQUISITION OF PROPERTY AND EASEMENTS FOR PROPERTY LOCATED ALONG COUNTY ROAD 21 BETWEEN WEST AVENUE AND DULUTH AVENUE GOAL AREA AND OBJECTIVE: Transportation and Mobility 5. Focus on Key Corridors that take Advantage of Collaboration with State and County Projects. DISCUSSION: Introduction The purpose of this agenda item is to amend Resolution 17-029 by substituting the figure of $143,611.77 for $110,000 which was an estimated expenditure at the time of the city council’s original approval on March 13, 2017. This matter is housekeeping in nature. History Five parcels exist along County Road 21 between West and Duluth for which the city and county have jointly sought to resolve a financial dispute with respect to easements and property ownership. The dispute dates to the 1980’s. For a detailed explanation of the various stages of this issue please see the attached agenda report and attachments from the City Engineer/Inspections Director Larry Poppler dated March 13, 2017. Updated documents have been substituted for some of the 2017 documents. The city council action in 2017 approved a Joint Powers Agreement with Scott County which would share the costs for acquisition of property and easements between the two entities. While the matter had not been resolved at the time the council considered the matter, staff had optimistically estimated that city cost would be $110,000 each. The $110,000 has not been paid. The report noted however that, “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.” Current Circumstances As it turned out condemnation did take place. The courts determined that the final cost to the city was $143,611.77. After paying all costs for both parties, the county has now billed the city pursuant to the joint power’s agreement. Since under Resolution 17-029 the staff had received authority to expend up to $110,000, adoption of a revised resolution reflecting the full amount of $143,611.77 is necessary. The resolution is attached for council consideration. ISSUES: This dispute has literally taken many hundreds of staff hours and a variety of staff members to resolve. Former City Manager Frank Boyles remarked that he was particularly happy to see this matter resolved within his tenure---almost. The easements and property acquired by the city and county as part of this transaction are in use for trail, storm water and street light purposes. FINANCIAL IMPACT: When Resolution 17-029 was approved, the funding source was to be the general fund reserve. The expenditure will be coded to the Stormwater Fund for the stormwater pond easement and funded with a transfer from the General Fund reserve. ALTERNATIVES: 1.Motion and second as part of the consent agenda to approve the attached resolution amending Resolution 17-029 by increasing the authorized expenditure to the county to be $143,611.77. 2. Motion and second to remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 19-___ AMENDING RESOLUTION 17-029 WITH RESPECT TO ACQUISITION OF PROPERTY AND EASEMENTS FOR PROPERTY LOCATED ALONG COUNTY ROAD 21 BETWEEN WEST AVENUE AND DULUTH AVENUE Motion By: Second By: WHEREAS, On March 13, 2017 the city council did adopt Resolution 17-029 approving a joint powers agreement with Scott County and a payment of up to $110,000 for the city’s share of land acquisition and easement costs for the above referenced property; and, WHEREAS, The $110,000 was an estimate and subsequent eminent domain proceedings determined that the amount owed by each party was $143,611.77; and, WHEREAS, The city has now been invoiced by Scott County in the larger amount and the city council desires to act pursuant to the Joint Powers Agreement adopted on this matter. 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.Resolution 17-029 is hereby amended to authorize the expenditure of $143,611.77 for the full payment of the land and easement costs contemplated in the joint powers agreement. The expenditure will be coded to F602-49420.00-55040.00. The funding will be accomplished by a transfer from the General Fund to the Stormwater Fund (F602-00000.00- 39203.00) 3.Funding for this purpose will be drawn from the general fund reserve (F101-80000.00- 59203.00). 4.The 2018 budget will be amended for this expenditure and transfer. Passed and adopted by the Prior Lake City Council this 4th day of March 2019. VOTE Briggs Thompson Burkart Braid Erickson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐☐ ☐ ☐ ☐ Absent ☐☐ ☐ ☐ ☐ ______________________________ Michael Plante, City Manager 4646 Dakota Street SE Prior Lake. MN 55372 MEETING DATE: AGENDA #: PREPARED BY: PRESENTED BY: AGENDA ITEM: DISGUSSION: CITY COUNCIL AGENDA REPORT MARCH 13,2017 5B LARRY POPPLER, CITY ENGINEER/INSPECTIONS DIRECTOR LARRY POPPLER CONSIDER APPROVAL OF A JOINT POWERS AGREEMENT WITH SCOTT COUNTYWITH RESPECTTO PROPERTY LOCATEDALONG CSAH 2I BE. TWEEN WEST AVENUE AND DULUTH AVENUE lntroduction 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. Historv 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. lt 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 laler opened bids for the West Avenue Reconstruction P@ect and during the summer of 1998 the stormwater pond was constructed on the oroperty. 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. 2001 The City received an application for a preliminary plal 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 desiqnation 2008 The City Council heard a presentation on a concept plan for a 57- unit senior housing building on 3lots within this site. No additional applications were filed. 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 20'to- 2017 Multiple contacts with property owners had been unsuccessfully at- tempted to negotiate easements and associated costs. ln 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. Cunent Circumstances ln 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 lf 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. 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 subiect 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 Scoft 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 2010 ISSUES: 2 FINANCIAL IMPACT: ALTERNATIVES: RECOMMENDEO MOTION: 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 flnal 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 wlth a City num- ber and it is recorded on a master andex 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 slnce the steps above were instituted the City has not had any issues related to remrding easements or deeds. The City secures 10-20 easements or deeds each year. These are just lhe 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. 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. lt 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. lt 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. 1. Approve a Resolution Approving a Joint Powers Agreement with Scoft 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. 3 A motion and a second for approval of Alternative #1. PR, (J 4646 Dakota Street SE Prior Lake. MN 55372 RESOLUTTON 17-029 APPROVAL OF A JOINT POWERS AGREEMET{T WTH SCOTT COUNTY WTH RESPECT TO PROPERTY LOCATED ALONG CSAH 21 BETWEEN WEST AVENUE AND DULUTH AVENUE Motlon By: Mccuire Second By : Burkart 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 easemenwright of way; and, WHEREAS, A Joint Powers Agreement was prepared to assign responsibility and costs- NOWTHEREFORE, 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 properly 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 13s day of March, 2017 VOTE Brisqs McGuire Thompson Braid BurkartAye E Nay tr Abstain tr Absent tr a tr tr tr a tr o tr M tr tr tr Frank Manager 7 t\ tr tr D a INVOIGE Page 1 of 1 lnvolce Number: tNZll68 Due Date: 11lDln18 lnvolce Date: 1OnAnA18 Customer Nwnber; 1094 AiliOUNT ENGLOSED s BlllTo: PRIOR LAKE, CITYOF ATTN CITY ADTUIINISTRATION 4646 DAKOTA STREET SOUTHEAST PRTOR I-AKE mN 55372 MAILPAYTiEilTTO: Scott Gounty Trcasurer Attn: ARAccoundng 200 Fourth Avenue WestShakopae 11N55370 Unlted States of Amerlca TERiIS: I'lst 30 Deys PTEASE OETACH AnE RETT RN Tt[S pOR]IOt{ lr{fH RErinTAr{CE Customcr PO: VAT Nbr:ilAIL PAYMENTTO: Scofr County Truasumr Atn: ARAccountng 200 Fourth Avsnue WeotShakopee ilNEE3Zg Unlted States of Amerlca TaxAmount: Doun Payment: GrosaAinount: lnvolce Credl[ NetAmount: $0.00 30.m $143,6fi.77 !0.(x,$r4q6{t.z lnvohe ilumber: tN2g,l6S lnvolce Date: I 0/t8r'll0{ g Payment Due Date: llnU?olg Llne Ao.ntig Unit Prlce Credtt NetAmount 4 QUESTIONS; EUNTE OI,ADE 952{96€059 JPA cP2l25 ACO ROIV4ITY COST SHARE t.00 EA l/l3,6{l.7f EA 0.00 143,911.77 Net Amount Due: $149,611.11 ,l I I I lbm Descripdon altt tq ulr r,&r ro ntr re pq l as-q ,w'I.(S.EMHmM6.ffiSdMIrcffi.cxfr&M8m u,.n*tWmt E,.dffirMffi Br-ffic&ffiffi B[.Wffi ru.mcend EU.nEm ,G|ilEuar re.taaffi HHEaEaa El.i.affi .fililWaE !6.raaffi lffiEt lE.iaaffi ttffi@a@ oBlsffia@ ld, aw,t4! lmce ffi.aald ' . ;.1: .:.- - - ,r'. . .rtrra.'L&. : l: -:-- ro.MaruMm E!ilIEaQ ffi.iatffi o-cffii*irriri.m.6m ' .,- .,j-."-:,. i . Latr?..1qfi.-r.h . 8A-@E,IHN ffigamg ao.ralcffi Ot.hEre@Strru. I rr ,I _.,Li'i ur!+l.i--l-fihi ....ryru.itw ffi@ffiat _D-6.raaffi E.EB.arffi.&flru H-Wffirlm ffie.,ffir? aE.lalc€ C-S*Lrfrmm |tm.l l,[a rmtilEiBrda E-ararla orffiA|ror iE- ,r - ir itooiiriierrrw.E ino at|lEwr t6CAot HHOr-d hH@ UrrypE..h.a Td al,zn 4!46m.orrua-iEiiit t t 2n)- 23tbE @.trrBdffil,a, Bl-Harya l!&lt E.cdlrffi@t " ---: _ .nt$.Elrr-.aarr.bF Iit .. i- -' An-mffiH i*qailEil -o.laaffi -U-txri'.in@d[o l-- tm-,Wt ExhlHt I C6t Alocatlon Prel5l i119A.qubdo.t PG.h I l2l E'tlmlrJ VW f.$ddthn C6r ly lucJr t la: l/lfllrcdrHoo Irt. Cotl A.ql*thn Co.t byfaacy lDpr&l tdmt dTotd Cd Aio..tlon I i I l Ii I I I JOINTPOWERS AGREEMENT TIIIS AGREEMENT made and entered into as of this 15 auy ot "rL/&r/yh2017, pursuant to Minn. Stat g 4?1.59 and Minn. Stat. 0 l l7.0G by uoa U.twc* Uru Co*ty of scotq ftereinafter re&rre{ to as the "county'), and the city ofprior Lake (hereinaftgr referred to as the "city'), political subdivisions and muaicipal corporations, orgaaized aod existing under the laws of the State of Mirnesota- WIIMSSETTI: II9HBREAS, city is acquiring an eascmeut for drahage and utility purposes with an area of 15,541 square feet for its existing stomr water pond on parsol I as shown on the attached Exhibit ' A", herciuafter refcrred to as (tsxisting Storm Water ponit ); md, WIIBRBAS, the City and County are acquiring ncw right of way by casements for highway purposos and access contol with a total arca of 73,360 squarc feet on parcels I - 5 as shom on the attaohed Exhibit A", haeinafrer referred to as (New Right of \Uay'); ard WHBREAS, tle city md the county are acquirirg an easerreut for drainage and utility purposcs vith aa area of 12,121 equare feet for firhrre expansion of thc storm water pond on Parcels 1.& 2 as shown on the attached Exlibit "A", hereinafter referrcd to as (,Fufuro pontl Needs'); and WHEREAS, Couty has engaged an independcnt appraisrl firm, which has complcted market value appraisals in complianco with 4pplioable la.ws and regulations for acquisitiou of various tlpes of easemen8 for the E:risting storm water ?oad New Right of way aad Future Pouil Needs on Parcele '1 - 5, which is summarized on the attached Exhibit .ts',; anil, wIlEREAs, the storm water pond.and tho new right of way are both located within &e municipal boundaries ofthe Citg WI{ERBAS, the existing stom water pond along with its future expansion and the uew right of way are on lhe same Parccls I - 5; au4 WHBREAS, the parties hcreto propose to acguirc new right-of-way by easements for highway purposes or in fcc and easements for draiuage and utility purposes for the oxistiug storm water pond aqd its ftture orpauion on parcels I - 5 which are held both indMdually and by abutting common fee owners; and WHBREAS, the city aud the couaty recopize that it is efficiont to coordinate lto objectives of both parties to reducc cost and avoid drrylication ofeffort 1 No]tr TTIERBFOIB, in consideration of the mutual promises and agreements contaired hereiq the parties hercby agree aS follows: 1. The parties hereto desipate the County as lead agency to acquirc righrof-way by easements for highway puqroses or in fcc and to acquire eascments for drainage and utility purposes either by oegotiation and mutuel agrccrncnt or oth€r means, iocluding but not limitcd to, by condemnation ptoceedings under the rights ofeminent domain, for both the City and County's necds recited above and as shova ou the attached Exhibit .,A',. 2. City and County ehall share the total acErisition costs and othcr affiliated costs associated with or resulting iom the Existing Storm Watcr pond; Futurc pond Nceds; and New Right of Way as allocated by the percentages notcd on the attachcd Exhibit ,ts,,. 3. Thc parties hercto acknowledgc that for any claims or costs which arc not a part of the current acquisition and its affiIiated costs for the Existing storm water pond, Futurc Pond Needs and New Right of way, thc rcsponsible party shall bear 100% of thc claims or cosb. 4. city shall reimburse the county for the city's share of the total acquisition costs within 30 dalls of the receipt of an invoice(s), citbcr by direct settlement by negotiation and mutual agrcemcnq by condemnation procecdings under the rights. of eminent domain; or by othcr actions. 5. IJpon cxecution of instruments by settlement(s) by mutual agrecmcnt or by filing of a final certificatc under oondomnation proceedings, county shall dclivcr to the city either by an instsunent or by an assignment a recordable instsument granting or assigning the city's perpctual casements for drainago and utility for the Existing stomr water pond as shown on the attached Exhibit "A". 6. thc partics horcto agree that the Future pond Needs are desipated aud rqgerved for County Highway 21. In the cvcnt that the City uses the propcrty acquited for Future Pond Neetls, or aDy pa't th."cot, at any futurc time for other stor^ water ponding needs, including by development under its dcvelopment authority, the city shall reimburse the county for acquisition costs, sevemnce damagosr if any, and administrativc costs associated with thc Futurc Pond Nceds actually incurred by the county in an amount proportionate to the propcrty used by the City. 7. This agreemont shsll terminate on the dato of delivery or filing of record instruments ortl6 filing of record final certificate under condomnatiotr proo€editrgs for all idcntified agguisitions in the office of county Recorder for Scott county, Minnesota providcd that zuch tcrmination is conditional upon the comptetion of all mutual promiscs aod agreemcnts cont8incd herein. 2 ! I 8. Indemnification. Beyond the activities contemplated in this agreemeut, eaoh party is responsible for its own acts and omissions and the results thereof to the extent authorized by law. Each party shall iudemnifr the other party aud hold it harmless from and against any and all ju'tgmelrts, claims, damages, costs aud e:lpenses, including a reasonable arnount as aud 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' Iiability is subject to the limits applicable t9 a municipalrty as set forth in Mim. stat. ch. 4d6. 9. Audit Disclosr.re . and Data Praciices. The books, records, documentS and accouirtiug procedures'and practices of the parties are subject to exnmination by the County, City and either the Legislative Auditor or the State Auditor for a period of six (6) yeals after the effective date of this Agreement. This Agreement is subject to the Minnesota Govemment Data Practice Acq Minnesotd Statutes Chapter 13 (Data Practices Act). AII gove,mment data, as dofined ia the Data Practice.s Act Section 13.02, Subd 7, whic,h is oreated, collected, reqeived, stored, used, maintaine4 or disseminated is subject to the reguire,uents of the Data Practice Act. All subcontuacts entered into by the parties in relation to this Agreement shall 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 interost, direct or indirec! in this Agreement The violation of this provision re,nders tte agreement void. THIS AREALEFTBI,AI.{K 3 IN WITNESS WHEREOR the parties have caused this Agreement to be duly executed, as of the date first written above, intending to be bound thereby. CITY OF COUNTY OF SCOTT L,Chair, City Council Scott County Board of Commissioners 2017 Dated: /r-l- f?.2017I Attosted Attested to: Gary Scott CountyAdminiskator Dated:20t7 Dated:20t7 Approved as to form:Approved as to form: By: Sarah Schwarzhoff Attomey for the City of Prior Lake Andcrsen Scott Couuty Asst. County Attorney 4 I I :1 i r. _J C c I J F- ( t- F F tr) I l, I c1 C.\ I1 l I I I ) I Itt l: Lr..i(l U' I t uit o U I 2 I ( I I ll t'a. 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