Personally I would probably go talk to the owner and try to work it out w/o getting animal control involved. Things can end badly w/animal control.
Have you ever met/interacted positively with/petted that dog to see what it is like?
What if Ben and the German Shepherd "met" each other and Nugget met that dog as well in the presence of the owner? If that is not agreeable, what about you calling the owner to say you all will be coming down his street and to please put the dog in if it is out?
The other thing you could do is take another route...but I would try to meet the dog and the owner on good terms first. Do you think the dog is dangerous or just scary when he bolts out toward you? My dogs both can seem scary but they aren't.
Maybe the dog and you all could be friends and it could become a pleasant part of your route. Can't we all just get along? 
When I run by myself, the dog has bolted but I just say back off loudly and the owner runs after him. As far as taking another route, I have but that route doesn't have a sidewalk and it's a busy street and honestly why should I. Ben get's along great with other big dogs, his best pal at the dog park is a corso cane dog, who's 165 llbs. HUGE teddy bear of a dog. Ben, only knows this german sheppard as an attacker, that's all he's known of him and honestly I don't feel like prying apart 2 dogs that are over 120 pounds. I think nugget would be okay to pet the german sheppard she has no fear of dogs but I think the owner can fuck off. I've asked nicely to no avail. I doubt that I'm the only one this dog has bolted after. We will see this weekend.
Just pepper spray then kick that sumbitch.
I do carry spray because lately been running at 4am outside near the gym and it's dark and scary. I wouldn't think I'd use it on a doggie but if me or ben or nugget is in danger, fuck yea I would
