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    2. 1.    
CC Work Session
Meeting Date: 09/12/2017  

Information
Title:
Consider Cost-Share Options to Construct Temporary Potassium Street Cul-De-Sac
Purpose/Background:
Purpose:
The purpose of this case is to discuss cost-share options for constructing a temporary aggregate surfaced cul-de-sac on the north end of Potassium Street, north of old Nowthen Boulevard.
 
Background:
A dispute exists between the City and the property owners regarding the existing Potassium Street easement width on the property located at 15641 Potassium Street.
 
The segment of Potassium Street, north of old Nowthen Boulevard, is a gravel road with no outlet.  For the last few decades or so, the City has been maintaining this road, including an area on 15641 Potassium Street used by vehicles to turn around.  However, this property was recently purchased by Ron and Shannon Schmitz who then posted no trespassing signs near the street on the south end of the property.  This caused Ace Solid Waste to inform its customers along Potassium Street that they would no longer serve their properties since they could no longer safely turn their trucks around at the north end of Potassium Street.
 
Both parties acknowledge a 33-foot easement exists on the west side of the property, but the City contends that a 66-foot easement exists as conveyed by a previous Deed transfer to the public.  The Schmitz’s dispute that the additional 33-foot easement exists.
 
The City Attorney has noted that the City has other protections above and beyond the existing easements due to the length of time that the City has maintained this road for public use.
 
Based on early communications between both parties, the cost share for each party ranged between $3,000 and $9,000.  Based on the cost-share proposal using quotes, costs for each party range from $10,700 to $21,500.

Below is a brief summary of actions to date.
 
February 7, 2017 - The City received the attached Settlement Offer from Mr. Schmitz.
 
May 1, 2017 - The City conveyed the following cost-share proposal to the Schmitz’s attorney:
City obligations:
  • Obtain consent from property owners to provide easements and draft and record the easement agreements.
  • Retain Hakanson Anderson to design the requisite plans and specifications at the City’s cost.
  • City to provide surveyor to stake the easement area and turn-around.
  • Provide at no cost the aggregate base class 5 material needed for construction.
  • City to pay own legal fees.
Schmitz’s obligations:
  • Pay for construction costs, including Hakanson’s project administration costs and inspection fees.
  • Transport gravel from City reserves to the construction site.
  • Schmitz to pay own legal fees.
 
May 10, 2017 - Schmitz Attorney stated the Schmitz’s could not respond to this proposal until the City quantified all costs proposed to be paid by both parties.
 
June - August 2017 – City retained Hakanson Anderson to prepare plans and specifications for use in soliciting quotes from Contractors.
 
August 17, 2017 - Three quotes were received, the lowest being $21,500.
 
August 18, 2017 - City presents updated cost-share proposal to Schmitz’s based on lowest quote received.
 
August 30, 2017 – Schmitz’s respond to cost-share proposal (attached).
 
The City Attorney will be present to discuss the case.
Timeframe:
Staff anticipates 15 minutes will be needed for presentation and discussion of this case.
Funding Source:
Any City cost share is proposed to be taken from the Public Improvement Revolving fund..
Responsible Party(ies):
City Engineer Westby will lead the discussion.  City Attorney Langel will be present to address legal questions.
Outcome:
Council is requested to consider the following options.
 
  1. Accept the Schmitz’s cost-share offer based on August 30, 2017 email.
  2. Make counter-offer to accept greater cost-share from Schmitz’s ($6K - $9K per original expectation, or other)     
  3. Authorize City Attorney to commence Declaratory Judgment action to declare Potassium Street a Ramsey city street accessible by the public. Council would need to adopt a resolution authorizing this action.
 
If this matter is not resolved in a timely manner, Ace may once again refuse to collect waste along Potassium Street.  Staff therefore recommends consideration of alternative #2 which would seem to offer the fastest path to resolution while requiring a more significant cost contribution from the property owner considering the benefit they will receive from the improvements.

Attachments
Schmitz Offer Letter
Schmitz response email
Site Location Map

Form Review
Inbox Reviewed By Date
Kurt Ulrich Bruce Westby 09/07/2017 02:58 PM
Bruce Westby (Originator) Bruce Westby 09/07/2017 03:03 PM
Kurt Ulrich Kurt Ulrich 09/07/2017 03:24 PM
Form Started By: Bruce Westby Started On: 09/07/2017 05:31 AM
Final Approval Date: 09/07/2017

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