During processing of Annexation #14-01 (Resolution #14-10364 approved by City Council on June 9, 2014), staff found three portions of road right-of-way in the area of this annexation in the Billings Heights identified as road tracts that had been annexed by the City previously but where the County had not quit claimed any interest in the tracts to the City. The rights-of-way are located on Barrett Road and on Kyhl Lane (See Exhibit A attached). This is a house-keeping item that should be acted upon to clear up any interest the County has in these now annexed road tracts under the City's jurisdiction. The County approved a quit claim deed for these portions of road tracts and the City Council must now act to accept the Quit Claim Deed to complete the process (See Attached Quit Claim Deed).

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.” The City acted to annex the right-of-ways when it annexed the adjacent properties in the past. However, Yellowstone County may still have an interest in the rights-of-way and accepting this deed from the County enables the City to have clear ownership to the rights-of-way in this area.

The Council May:

• Accept the Quit Claim Deed from Yellowstone County finalizing the City's oversight of these rights-of-way
• Not Accept the Quit Claim Deed from Yellowstone County finalizing the City's oversight of these rights-of-way. Not accepting this deed means the rights-of-way remain annexed but leaves some doubt as to whether the City is the sole owner of the rights-of-way.

There is no direct financial impact to the City in accepting this quitclaim deed from Yellowstone County for these portions of road rights-of-way on Barrett Road and Kyhl Lane. However, this action establishes the City's clear obligation for maintenance and management of these portions of road right-of-way in the future.

Staff recommends that the City Council accept the quit claim deed from Yellowstone County for its interest in the portions of rights-of-way located on Barrett Road and on Kyhl Lane as described in the attached quit claim deed.