During processing of annexation #12-07 (Resolution #12-19207 approved by City Council on August 27, 2012), staff determined that the right-of-way in front of the subject property on Grand Avenue is identified as a road tract on the north half and a road easement on the south half. Section 7-2-4211 of the Montana Code Annotated (MCA) requires a city to annex the entire width of an adjacent road with the properties it annexes. To comply with Section 7-2-4211 MCA, the City must secure a quit claim deed from the County for the north half, with the County deeding any interest it may have in the road tract to the City. This also means the City must seek a quit claim deed from the property owner to the south for the road easement portion of Grand Avenue.

The County approved a quit claim deed for the north half of Grand Avenue right-of-way on August 28, 2012 (See Attached Quit Claim Deed). The City Council must accept the quit claim deed to complete the process of taking over the north half of the right of way on Grand Avenue adjacent to the property that was annexed. The City is still in the process of contacting the property owner for the southern easement and this will be addressed as a separate agenda item for the Council.

The City of Billings is required to annex road rights-of-way when annexing property adjacent to roads based on requirements of the State of Montana Code. Montana Code Annotated 7-2-4211 provides that in all cases of annexations of property, the city “shall include the full width of any public streets or roads, including the rights-of-way, that are adjacent to the property being annexed.” This law, enacted by the 2003 session of the Montana Legislature requires the City to annex the entire right-of-way for Grand Avenue in this area since it is adjacent to the annexed property on the north side of Grand Avenue. The City acted to annex the right-of-way when it annexed the adjacent property. However, Yellowstone County may still have an interest in the right-of-way and accepting this deed from the County enables the City to have clear ownership to the right-of-way in this area.

The Council May:

• Accept the Quit Claim Deed from Yellowstone County finalizing the annexation process of the north half of the Grand Avenue right-of-way
• Not Accept the Quit Claim Deed from Yellowstone County finalizing annexation of the north half of the Grand Avenue right-of-way. Not accepting this deed does not mean the right-of-way is not annexed but does leave some doubt as to whether the City is the sole owner of the right-of-way.

There is no direct financial impact to the City in accepting this quit claim deed from Yellowstone County for the Grand Avenue road right-of-way. However, as more property along Grand Avenue is annexed in the future, maintenance and management of Grand Avenue will become the City's responsibility.

Staff recommends that the City Council accept the quit claim deed from Yellowstone County for its interest in the north half of the Grand Avenue right-of-way as described in the attached quit claim deed.