H1. Reso 5854 - Land Transfer201 P Avenue East
PO Box 1997
Kalispell, MT 59903
Phone: 406-758-7720
Fax: 406-758-7831
www.kalispell.com Ipublic—works
Date: February 28, 2018
TO: Doug Russell — City Manager
FROM: Keith Haskins, PE — City Engineer
SUBjECT: Resolution for Land Transfer
Meeting Date: March 5, 2018
Bac d:
The Preferred Route Assessment completed for the Westside Interceptor project identified a
potential route through properties west of South Meridian Drive, currently known and operated
as Wild Geese Gardens, a garden and landscaping nursery. Prior to negotiating with landowners
for easements, a lot was purchased (referred to as the Sundt lot) for $60,624. The Sundt lot was
purchased as a prime location for a lift station as identified in the 2008 Sanitary Sewer Facility
Plan.
When the City initially approached the owners of Wild Geese Gardens (Mick and Kevin Morin)
to try to negotiate an easement through their properties, an acceptable price could not be reached.
Therefore, the preferred route was modified to extend up South Meridian Road from 7 th St W to
4'h St W, and then westerly on 4 th St W to the BNSF railroad right-of-way where it reconnected
with the preferred route.
During the Preliminary Engineering phase of the project, the City's consultant, Robert Peccia
and Associates (RPA) determined that the lift station on South Meridian could be eliminated
from the project by completing realignments and reconfigurations of other utilities. Therefore,
ownership of the Sundt lot is no longer necessary for the project.
Negotiations between the Morins and the City were recently reestablished when the Morins
approached RPA with an option that might be acceptable to them. Their proposal was to trade
the necessary easements and construction permits through their properties for the ownership of
the Sundt lot. The trade also includes a 10-foot reservation along the easterly boundary of the
City owned Sundt lot, and temporary construction permit across the rest of the Sundt lot during
construction.
Doug Russell — City Manager
February 14, 2018
Page 2
The Morin parcels were appraised at $2.61 per square foot. The Sundt lot value of $2.43 per
square foot is based on the purchase price. A breakdown of the values to be considered as part of
the trade are summarized below.
Easeme nt
e
- - - - - _- --_-------
Easement
-
Temporary
Pr ice
Price
Areas
Construction
(SF)
Permit Areas
(SF)
IT, UP I I
ORMUM
Based on the value the City will receive as part of the direct transfer of the parcel for the
easements, the transfer is fair and equitable. Additionally, RPA estimates the City will save
approximately $160,000 by keeping the construction of the project outside of South Meridian
Road, for an overall savings of nearly $100,000 ($160,000 — $60,624).
A Council Work Session was held on February 12, 2018 to discuss the land transfer. Based on
the discussion, an agreement has been presented to and signed by the Morins, and is attached for
signature. State law requires a resolution to be passed by a two-thirds Council vote for approval
of the land transfer.
Action Requested:
Motion to approve Resolution No. 5854, A Resolution Approving the Sale of the City Owned
Property as an Exchange for a Reservation of Easement to Serve the West Side Sewer
Interceptor Service.
Alternatives:
As suggested by City Council.
Attachments:
Resolution 5854
Morin, M. Easement Agreement (2 Copies)
Morin, K. & H. Easement Agreement (2 Copies)
Mitchell, R. (January 31, 2018). Evaluation of Morin Easements/Permits in Exchange for the
Sundt Property [Memorandum]
= T-a"Iffuldri Immm.''
A RESOLUTION APPROVING THE SALE OF CITY OWNED PROPERTY AS AN
EXCHANGE FOR A RESERVATION OF EASEMENT TO SERVE THE WEST SIDE
SEWER INTERCEPTOR SERVICE.
WHEREAS, the City of Kalispell acquired a parcel of property described in Exhibit "B" attached
hereto for the purpose of placing a portion of the West Side Sewer Interceptor service
within it; and
WHEREAS, the consultant for the City has recently negotiated with neighboring property owners
to acquire a reservation of easement on those properties shown and described in
Exhibit "A" as an alternative route for the West Side Sewer Interceptor service; and
WHEREAS, the neighboring property owner is interested in obtaining the city owned parcel of
property in exchange for conveying all necessary easement rights to the City upon his
parcel of property; and
WHEREAS, the Public Works Department staff believe that the alternative route has the
significant benefit of avoiding the construction and maintenance disruption on South
Meridian Road and on Fourth Street and the City's consultant estimates an overall
savings of costs of approximately $ 100,000; and
WHEREAS, the consultant has obtained valid valuations of the city owned property and the
easement reservation to be acquired in the similar ranges of $60,000 to $65,000; and
WHEREAS, the city council finds that the City will receive fair market compensation for its
property in the proposed real estate exchange and that it is in the best interests of the
City, its taxpayers and ratepayers to enter into such exchange.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
KALISPELL, MONTANA, AS FOLLOWS:
SECTION 1. The Mayor is hereby authorized, on behalf of the city, to enter into a purchase
and sale agreement to effect the real estate transaction exchange described in
the recitals above.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, THIS 5TH DAY OF MARCH, 2018.
Mark Johnson
Mayor
Aimee Brunckhorst, CMC
City Clerk
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A portion of the Northeast Quarter of the Southeast Quarter of Section 13, Township 28 North,
Range 22 West, P.M.,M., Flathead County Montana, being more particularly described as
follows:
Beginning at the south comer of the east boundary of Tract 1, Certificate of Survey No. 19702,
records of Flathead County, Montana, said point being on the west right-of-way of Meridian
Road; thence along the southeasterly boundary of said tract for the next two courses;
South 88'23'40" West 194.88 feet; thence South 01'36'20" East 169.73 feet to the centerline of
Ashley Creek; thence along said centerline, South 75'47;16" East 43.61 feet to the northwesterly
right-of-way of Foys Lake Road and the beginning of a 1025.00 foot radius curve concave
southeasterly, with a radial bearing of South 45'10'32" East; thence along said northwesterly
right-of-way and said curve, through a central angle of 10'52'09", an are length of 194.44 feet to
the abovesaid west right-of-way of Meridian Road; thence along said west right-of-way, North
00'39'58" West 59.30 feet to the Point of Beginning, containing 0.574 acre of land, more or less.
RESERVING UNTO GRANTOR an Easement and Right -of -Way for public road and utilities
upon which to construct, operate, maintain, replace, upgrade and remove public utilities and
necessary appurtenances, along with access to, from and along the same covering and embracing
the following described land:
A strip of land 10 (ten) feet wide, being the easterly 10 feet parallel to the easterly boundary of
the above said tract of land, with side lines being lengthened and shortened to intersect property
boundaries, containing an area of 626 sq. ft., more or less, as shown on the attached Exhibit "A"
AND EXCEPTING THEREFROM those portions conveyed to the State of Montana in Bargain
and Sale Deeds recorded July 1, 1965 as Document Nos. 5595 and 5596;
AND SUBJECT TO any and all covenants, conditions, restrictions provisions, easements and
encumbrances apparent or of record.
WESTSIDE fIN"rIERCEPTOR
CITY OF KAUSPE1 L
(heu.uriaft er rr,,vrn.-A to @,,,; (rITY)
EASEMENT AGREEMENT
Ust Non es & Addressies of ffie, Grai ttors
(CMIMt PUrchaser, Contract Sellier, Lessee,
Mick E. MoHn
P.0. Box 10,98
Kalispell, MT 999103
Flathead
C;rgu.
�T,Y
In consideration of the specific agreements to be perfornneA by ffie parfles, hereto and written in this
agYeernent, the parties lbind themselves to fl,,ie Lcmlls, and condrtions siate d hereli i, No, verbal
represenladons cat agieernen�s shaii be binding upoin u.,,Jffier party, rws agreement is effective upon
execution by Uie CITY or a designated representative. Grantor corrItract's that he wiH, upon CITY's
request, execute an e,,rsernent and terriporady r.,;onstrucfion peirmil, as required by CITY, for afl areal
I roperty agreed to be conw,.,,yed by grois agreemen�
l EGA L DESCRHPI'110N OF EASEMENT:
A strip of land 12-CtLtirty I feet wide wit1fln Deed Book 309, Page 480, Deed Book 306, Page 431 and! Deed
Book 310, Page 254 and shown On Certificate of Survey No,19702, located in the NE V. SE'A ofSection 13,
Townshtp28 North, Rangie 22 West, P,M,iVL, according to t1he Map Or Plat thereof on, file and of record lrj
the office of the clerk and recorder of Flathead County, Montana, be4ig Olt- southeriv 30, feet parailel to
the southerly boundaries of said tracts of land, with th,e proposed sewer line being 20 feet north, of the
southerly boundaries, of said tracts of land, with side lines tpe4jg lengthened or siwrtened to intersect
property boundaries, containing ain area of 15,435 saga ft., snore or less, as shown ain the attached Exhibit
" A ".
Along with a 22_twang foot strip at land, along the northerly side of the autereasement boundary and
along the westerly property boundary, which is vafid for a Urne period of two (2) years from the start of
construction upan this prollpeirty, asshown on the Attached Exhibit "A",
r0l'Al COMPENSAI]ON (inckodealp damages to the rerirnainder); None
The Granlor will executea 30-ioot wide Sanitary Sevw r Une Easernerd, bedng [hesouth 30 feet of said property,,
atong wifli a Teonporary Construcfiori Pear ffiaJ 20-feet on the north side of sakf easernent and westerly
property boundary for Me benelH ofihe Cl 1"1( throuo,the Grarflors properly. The Ternporary Cons[riucAion Permit
area w0i be vaiid for as One period rrl: rwo (2) years rrom the starl of consfiLxfion upon Giarotoi's properly, The
e,asernenl and pern,d[ will be genemliy located along the sotAlbefly and wesPerlly laroperty boundaries of Gsuitor's
Pt0p(-',!Ftyr The location athe easernent and perrrift areas is as shown on Me ahached Exhibi "A", located in the
SEIA, oaf Section 13, T, 28 N- R. 22 W , P Flathead County,
LEGAIL DESCRU"TION OF DEED WI ff-I FtESERVATION�
A portion of the Northeast Quarter olf the Southeast Quarter of Section 13,,irownshlip 28 North, Rangt, 22
West, P.M.,M,, FMIhead County Montaina, being moire Iparficuularly described as follows:
Bo'ginning at t1he South corneas of the east boundary of'Tract 1, Certificate of Survey No. 19702, records of
Flatftead Comay, Mantana, ",,Idi point being on the west right-of-way of Mwidian Road, thence along the
soulheastedy boundary ofsaid tiract for the next two corurses;
South 88'23'40" West 194.88 feet
thence South 01'36'20" East 169,73 fi,.aet to the centerflne of Ashley Ci,eek� thence along sMidl centerline„
South 75`47�16" East 43.61 feet to the northwesterly right-of-way of Foys Lake Read and the beginning of
a 1025X0 foot radius carve concave southeasterly, with a radlM bearh,qj of South 45"10'32" East; thence
along said northwesterly rtght-of.way and said curve, through a central angle of '10'52'09", an arc length
of 194.44 feet to the abovesaid west rtght-of-way of Meridian Roadthence along said west rilght-of-way,
North 001'39"58" West 59.3O feet to the Point of Beginning, containing 0,574 acre of land, more, or iess.
RESERVING UNTO an Easernent aind Right -of -Way for public road and utitities, heing a strip of lainci '10
(ten) feet wide, being the easterly'10 feet parallel to the easterly boundary of the albovesaid tract of hand,
with side lines, being lengthened and shortened to inlersect property boundaries, containing an area oaf
G26 sag, ft,, micro or less, as shown oni the attached Exhibit "B".
The CITY will execute a (31 and Deed with Reservaflon as described above, wikh throe, remaindw of U)G- propelty
b0ig as Temporar y (r,,n,,r,,6on for benem of ve ary, i he -runnporary Cons1ruclion Permit area MH
ber, valki for a Tirane; period oPlwo (2) years fi om thre start of coristn,,wkon upmi this property, as shown on [he
attached ExlhibiC "B",
Project Desigriziflon. WEs'r:sU)E INTERCEPTOR Par'ceL MICK E. MORIN
(C:C)NMUMJ k0rfl PreVbU5
7. The UTY agreies to restore alt gra veq surfacing Ural Gs reinoved or, damaged durti ig construction of the sewer line,
Any gravel surfacing mr,noved wN be u-eplacecl wilh a gravel section consWing of 6" of Crushed Base Course, 9"
of Select Subbase Course and SeparationiStabilizatiron Fahric, The gravei sechon wifl only be firMeffled were
exisfing gravel surfacing Gs rernoved or darna$,)ed diuk'ig corisiruction.
B. Addififmal torns and cui'61ms�
CITY will reirnove, slockpile aind repiace ailt tlopsoit wrthin the area M cxmtruc',flon
CITY w0t grade alll 6slurbed areas to niatch exiskfi-Q terrain.
CITY M111 revegetwe afl cfisturbv.'J areas.
CITY wffl remove and replace at[ fences ('tn-kkid) ftt .are frrq'.*cted as as resiult of the i-A.jRSlVUCI!0F1,
cl ry +will remove ana reps as tfie exr sting comirnen,'Jal sign for Wfld Geese, Gaidens,
rHE PAR TIES HERE rO HAVE EXECUTED T MIS AGREEMENI ON I HE DA rES SIHOWN;
Vie Understand flhaR we are ieqijjred by law to provide, DUr CrOrrr:ct taxpayer identfffcatiorr number(s) to the City of Kallspelll
and that failing to comp�y may subjeci usr; to civill anc�l crirnirmi penalties We certify anal the Mmiber(s) below is/
our correct [axpaye r idenfificabon nurnber(s),
S�qnml (Date) Tw(payer. ID No,
Rucommr.i,�ix-c� � OR Ai,mtowu I
(Date)
�n
kobe'lt Pkcia & Associates (11: applicabte) (Date)
Ml(.',K E. MORIN
Ap�-,iirm- 1) FOR AND or,i Br-r W-r - or:: Cri r,,,, oi KALISPE, % L �
(Title of ALJ[hoirized Agent)
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WESTSIDE INTERCEPTOR
DESIGNATION
CITY OF KALISPELL
(hereinafter referred to as CITY)
EASEMENT AGREEMENT
List Names & Addresses of the Grantors
(Contract Purchaser, Contract Seller, Lessee, etc.)
Kevin Morin and Halley Morin
P.O. Box 3543
Kalispell, MT 5990
In consideration of the specific agreements to be performed by the parties hereto and written in this
agreement, the parties bind themselves to the terms and conditions stated herein. No verbal
representations or agreements shall be binding upon either party. This agreement is effective upon
execution by the CITY or a designated representative. Grantors contract that they will, upon CITY's
request, execute an easement and temporary construction permit, as required by CITY, for all real
property agreed to be conveyed by this agreement.
A Sanitary Sewer Line Easement granted to the City of Kalispell that is a Strip of Land, 10-Foot Wide,
being the east 10-Feet, located in:
TRACT 1 OF CERTIFICATE OF SURVEY NO. 19702, RECORDS OF FLATHEAD COUNTY, MONTANA,
le-TIQ
3. TOTAL COMPENSATION (includes all damages to the remainder): $10.00.
4. IT IS UNDERSTOOD AND AGREED THE CITY SHALL MAKE PAYMENT AS FOLLOWS:
A payment in the amount of $10.00 to be made payable to the Grantors, and mailed to Grantor's mailing address.
5. The Grantors will execute a 10-foot wide Sanitary Sewer Line Easement, being the east 10-feet of said property,
along with a Temporary Construction Permit that is 20-feet on the west side of said easement boundary for the
benefit of the CITY through the Grantors property. The Temporary Construction Permit area will be valid for a
time period of two (2) years from the start of construction upon Grantor's property. The easement and permit will
be generally located along the easterly property boundary of said Tract 1, The location of the easement and
permit areas is as shown by the attached Exhibit A, located in the SE 1/4 of Section 13, T. 28 N., R. 22 W.,
P.M.N., Flathead County,
6. The CITY agrees to restore all gravel surfacing that is removed or damaged during construction of the sewer line.
Any gravel surfacing removed will be replaced with a gravel section consisting of 6" of Crushed Base Course, 9"
of Select Subbase Course and Separation/Stabilization Fabric. The gravel section will only be installed were
existing gravel surfacing is removed or damaged during construction,
7. Additional terms and conditions:
CITY will remove, stockpile and replace all topsoil within the area of construction.
CITY will grade all disturbed areas to match existing terrain.
CITY will revegetate all disturbed areas.
CITY will remove and replace the existing commercial sign for Wild Geese Gardens.
CITY will remove and replace all fences (in -kind) that are impacted as a result of the construction.
Page 1 of 2
Project Designation: 18VESTSIIDE INTERCEPTOR Parcel: KEVIN & HAIL MORIN
(Continued from Previous Page)
THE PARTIES HERETO HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN:
We understand that we are required by law to provide our correct taxpayer identification number(s) to the City of Kalispell
and that failing to comply may subject us to civil and criminal penalties. We certify that the number(s) below is/are
our correct taxpayer identification number(s).
Signature: KEVIN 11 (Date) Taxpayer ID No.
Signature: HAILEYMORIN
(bate)
Taxpayer ID No.
RECOMMENDED FOR APPROVAL: APPROVED FOR AND ON BEHALF OF CITY OF KALISPELL:
(Date) (Date)
& its:
obert Peccia & Associates (if applicable) (Date) (Title of Authorized Agent)
KEVIN & HAILEY MORIN
Page 2 of 2
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TO: Keith Haskins, PE
FROM: Ryan Mitchell, PE, PLS
SUBJECT: 14107.004 — West Side Interceptor
Evaluation of Morin Easements/Permits in Exchange for the Sundt
Property
DATE: January 31, 2018
Keith,
The discussion below is intended to summarize the easements and temporary construction
permits that would be secured upon the Sundt Property, Kevin Morin's Property and Mick
Morin's Property in exchange for the Sundt Property.
Land Values:
The land values used in this analysis were determined either by the purchase price of the
land or by previous appraisals, as shown below:
• Sundt Property = $2.43 per Square Foot. Per the purchase price.
• Kevin Morin Property — $2.61 per Square Foot. Per the 2008 Appraisal by James
Kelly.
• Mick Morin Property — $2.61 per Square Foot. Per the 2008 Appraisal by James
Kelly.
Easement and Temporary Construction Permit Areas:
The easement and temporary construction permit areas have been determined by survey
and are shown on the attached Exhibits. A summary of the Easement and Temporary
Construction Permit areas are shown below:
Property
Easement Area (SF)
Temporary Construction
Permit Area SF
Sundt
626
24,366
Kevin Morin
153
307
Mick Morin
15,435
20,916
Values of the Easements and Temporary Construction Permits:
Easement areas are paid for at 100% of the land value, based on square foot price.
Temporary Construction Permit areas are paid for at 20% of the land value, based on
square foot price. The table below shows the price, areas and values for the easements
and temporary construction permits:
HELENA, MT
KALISPELL,. T'
FORT COLLINS,. CO
Ro Ai ,y N 65y
B RO, ! 4"100
MO �{pr�YYlfrI�gJ w'i1
iro 5 C r t gar Avoi loin^
T02 4 O p(r Mtivo P ,/L ` ut h 3t o
I;r,rvrr R
14rq ir.i N.�11 A604
k,uli^,prll I✓IT 599}13
1 arl Col llri+; t D 8V24
�fa,In �0 A/d f,"'$c.lO1Q.f
lr to tib"IFJ F52 W25
970,184 ,206
F,,K ;fig, a J7, Y )?6
406 1 ,: �0r,`4
+l0:4i!I 4 4dW)
January 31, 2018
Keith Haskins, PE
Page 2 of 3
Property
Easement
Price
($)
Permit
Price
($)
Easement
Areas
(SF)
Temporary
Construction
Permit Areas
(SF)
Value
($)
Sundt
$2.43/SF
$0.49/SF
626
24,366
$13,461
Kevin Morin
$2.61/SF
$0.52/SF
153
307
$559
Mick Morin
$2.61/SF
$0.52/SF
15,435
20,916
$51,162
Total =
$65,182
Eauitable Exchanae of Easements and Temoorary Construction Permits for the
Sundt Property:
The Morin's have stated that they will only trade the easements and temporary construction
permits for the Sundt Property. The Sundt Property was purchased for a total cost of
$60,624.00. The total value of the easements and temporary construction permits is
$65,182, which is greater than the purchase price of the Sundt property.
Other Considerations:
The cost savings to the Construction Budget, by going thru Morin's Property instead of up
Meridian Road and 4t" Ave West, would be $163,600. Additionally, there are many other,
non -monetary, factors that should be considered. First, by not installing the WSI within
Meridian Road and 4t" Ave West, the general public and the School will have much less
impacts. These impacts are two -fold and would start in the early Spring of 2018 and not
end until mid -Fall of 2018. Prior to installing the WSI in Meridian Road, NorthWestern
Energy would need to relocate the gas line in Meridian Road from 7t" Avenue north to 4tn
Avenue. This work, in preliminary discussions with Eric Smith at NorthWestern Energy,
would take place in the Spring of 2018 and would take approximately 1-month to complete.
After this work, the WSI would be installed and surfacing restoration would occur. It is
anticipated that the work in Meridian and 4t" will occur in late -August to end -of -September
for pipe work, with the surfacing improvements subsequently completed.
Another non -monetary factor is the access for residents along Meridian Road and 4t" Ave
West. Access to this area is limited and there will be significant inconveniences to the
residents along 4t" Avenue West and Meridian Road during both the gas main relocation
and the construction of the sewer line.
BNSF Permit:
Routing the WSI through the Morin Property will require another BNSF Permit to be
prepared and submitted for the parallel installation from 4t" Ave W, south to where the WSI
turns across Morin's Property.
Summary:
Exchanging the easements and temporary construction permits as discussed for the Sundt
Property is an equitable exchange. Additionally, the City of Kalispell will realize additional
January 31, 2018
Keith Haskins, PE
Page 3 of 3
savings on the construction costs and less disruption to the traveling public, especially on
South Meridian Road and 4t" Avenue West.
Professionally,
ROBERT PECCIA & ASSOCIATES
m
Ryan Mitchell, PE, PLS
Project Manager
Cc- File
K:AKa1-Proj-Data\14107.000 -West Side Interceptor\14107.001 Thru 007AE. Design Correspondence\l. Client\180130kh.Memo -Morin Easements & Pemrits.Doc