HomeMy WebLinkAboutItem 11 Jasper Trunk Sewer Easement Acquisition AGENDA ITEM SUMMARY Meeting Date: 11/19/2012
Meeting Type:Regular Meeting
Staff Contact/Dept.: Kristi Krueger/DPW
Staff Phone No: 541-726-4584
Estimated Time: Consent Calendar
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Maintain and Improve
Infrastructure and
Facilities
ITEM TITLE: JASPER TRUNK SEWER EASEMENT ACQUISITION
ACTION
REQUESTED:
Approve or reject the following motion: APPROVE THE PAYMENT OF
$146,422.00 TO JACK LOUIE FOR EASEMENT ACQUISITION FOR THE
JASPER TRUNK SEWER PROJECT AND AUTHORIZE THE CITY
MANAGER OR DESIGNEE TO EXECUTE DOCUMENTS TO CLOSE THE
TRANSACTION ON BEHALF OF THE CITY.
ISSUE
STATEMENT:
As part of the Jasper Trunk Sewer Project, staff is requesting to pay Jack Louie
$145,000 (+$1,422 for closing costs) for the easement on his property for the
installation of the Jasper Trunk Sanitary sewer.
ATTACHMENTS: Attachment 1: Louie Property Appraisal
DISCUSSION/
FINANCIAL
IMPACT:
As part of the City’s Jasper Trunk Sanitary Sewer Project, various easements were
necessary to acquire in order to build the Project. At this time, the easement on the
Louie property has been negotiated and is ready for payment.
The City’s original offer to Jack Louie was $100,250 for the sewer easement
($90,300) and 2 years of a Temporary Construction Easement (TCE) ($9,950). The
appraiser valued the sewer easement at 75% of the full fee value ($70,000 per acre)
for the encumbered area. The TCE was valued at a typical rental rate of 7% of the
fee value.
A counteroffer was presented of $167,806. The justification for the counteroffer
was based on damages to a conceptual single family development, on property that
is currently outside the UGB and cannot be developed. Also that the encumbrance
to the property for the sewer easement should be 100% of fee value in areas where
the gravel access road will remain after construction.
We proposed the following settlement;
Sewer easement (1.72 acres) $105,350 – 0.86 acres x $70,000 @ 100% = $60,200
0.86 acres x $70,000 @ 75% = $45,150
TCE (2 years) = $9,950
Cost to Cure to redraw the conceptual single family development incorporating the
sewer easement = $5,000
Total = $120,300
This was rejected by the property owner and he prepared for condemnation. In an
effort to avoid the cost and delay of condemnation, a final settlement offer of
$145,000 (+$1,422 for closing costs) was proposed and accepted by the property
owner.
This amount falls within the budgeted amount for easement acquisition for the
project. Both Jasper Trunk Phase 1 and Phase 2 projects are overall under budget.