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HomeMy WebLinkAbout6.f. Bonaire Path East, City Project 2018-03 Authorize Easement AcquisitionI:\City Clerk\Agenda Items\Approved Items\6.e. Bonaire Path East, City Project 2018-03 Authorize Easement Acquisition.docx EXECUTIVE SUMMARY City Council Meeting: March 5, 2019 AGENDA ITEM: Bonaire Path East, City Project 2018-03: Authorize Easement Acquisition AGENDA SECTION: Consent PREPARED BY: Brian Erickson, PE, Director of Public Works/City Engineer Stephanie Smith, PE, Assistant City Engineer AGENDA NO. 6.f. ATTACHMENTS: None APPROVED BY: LJM RECOMMENDED ACTION: Motion to authorize negotiation for the right-of-way and easement acquisition for Bonaire Path, CP 2018-03, not to exceed $87,500. BACKGROUND City Project 2018-03 is proposed to convert Bonaire Path East from the existing rural gravel section to a paved section. The project will also include utility work and improvements at the existing railroad crossing on Bonaire Path E to facilitate extending the City’s Quiet Zone. On February 20, 2018 the Council approved a contract with Bolton & Menk for engineering services including the preparation of a Feasibility Report. The report found this project, to be feasible, cost effective, and necessary. On February 5, 2019, the Rosemount City Council authorized the City’s consultant, Henning Professional Services, to make offers consistent with independent appraisals for the right-of-way (ROW) and easements for the project. RIGHT-OF-WAY & EASEMENTS The ROW for Bonaire Path East is largely prescriptive, with a portion of the south side platted with the Greystone development. With this improvement project, additional ROW will be acquired to accommodate the wider road section and stormwater facilities. The City has made offers consistent with independent appraisals. Of the five properties that received offers, one has accepted and is moving forward with the acquisition. As of this time, it is staff’s understanding that the remaining properties are open to negotiation and voluntary acquisition. The City has received counter-offers from some of the property owners. In order to avoid the costs associated with condemning the property and scheduling delays, staff recommends negotiation with the property owners to reach a settlement that is fair to both the City and the property owners. The proposed motion would authorize such negotiations. Please note that while in negotiations, staff may proceed with the condemnation process as a precaution until the settlements are finalized in order to prevent delays that may occur if the negotiation process cannot be resolved in a timely manner. 2 COSTS & FUNDING The Feasibility Report estimated the ROW acquisition at $175,000. The proposed motion would authorize negotiation up to $87,500, 50% of the Feasibility Report’s estimated amount. Please note, the ROW budget is also used for legal services, right-of-way services and engineering fees associated with the acquisition process. The total cost (professional services plus authorized settlement negotiation) is currently estimated at $140,000, assuming negotiated settlements can be reached, which is within budget. The total project cost estimated in the Feasibility Report is tabulated below: This project is scheduled in the 2019-2028 CIP. It is proposed to be funded by a combination of MN State Bonding funds, MN State-Aid funds, utility core funds, and special assessments of benefitting properties. A preliminary assessment roll is included in the Feasibility Report. RECOMMENDATION Staff recommends the City Council authorize negotiations for the right-of-way and easement acquisition for Bonaire Path East, City Project 2018-03 to reach a settlement that is fair to the City, property owners and taxpayers of Rosemount, not to exceed $87,500.