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7.C.
City Council Draft Agenda
Meeting Date:
04/02/2019
From:
Charity Lee, Real Estate Manager

TITLE:

Consideration and Adoption of Ordinance No. 2019-03: An ordinance of the Flagstaff City Council formally accepting specific real property interests, delegating authority, and establishing an effective date. (Acceptance of real property interests, easements)

STAFF RECOMMENDED ACTION:

At the April 2, 2019 Council Meeting:
1) Read Ordinance No. 2019-03 by title only for the first time
2) City Clerk reads Ordinance No. 2019-03 by title only (if approved above)
At the April 16, 2019 Council Meeting:
3) Read Ordinance No. 2019-03 by title only for the final time
4) City Clerk reads Ordinance No. 2019-03 by title only (if approved above)
5) Adopt Ordinance No. 2019-03

Executive Summary:

The City regularly acquires real property interests (such as deeds transferring property in fee simple and easements) during the development review process.  Typically these real property interests are acquired by dedication or donation.  These acquisitions may be for drainage, utilities, the urban trails system, slopes, rights-of-way or other public purposes.  The City Charter, in Article VII Section 5, requires the City to acquire real property by ordinance.  This ordinance will formally accept the real property interests donated, dedicated, or otherwise acquired by City.

Financial Impact:

Real property is considered a fixed asset in the City.  Until City Council approves an ordinance accepting the acquisitions, the real property value is not recognized in an audit so while there is not an actual financial expenditure associated with these acquisitions, there is a fixed asset value the City receives through this action.

Policy Impact:

None

Connection to Council Goal, Regional Plan and/or Team Flagstaff Strategic Plan:

TRANSPORTATION AND OTHER PUBLIC INFRASTRUCTURE
Deliver quality community assets and continue to advocate and implement a highly performing multi-modal transportation system.

Has There Been Previous Council Decision on This:

Annually the Real Estate program brings a list of real property and easements to be accepted by Council.  January 2, 2018 was the last time the real property and easements were accepted by Council through Ordinance No. 2018-02.

Options and Alternatives:

1.  Adopt Ordinance No. 2019-03   and formally accept the real property interests.
Pros:  Formally accept property interests identified to service community needs, per the Charter. Cons: None.
2.  Do not adopt Ordinance No. 2019-03.  In this case the City would need to transfer real property interests back to the Grantors. Pros: None identified. Cons: This would result in loss of legal rights to use properties for utilities, trails, drainage and other public purposes.

Background and History:

The City acquires property interests when developments progress through the permitting and review process.  These property interests may be easements for a specific purpose such as a utility line or a drainage area, or may be interests for public rights-of-way, open space, or land received in the land trust program which are acquired by deed as real property.

Key Considerations:

Real property interests are acquired throughout the year by donation and dedication necessary to achieve the Council and Regional Plan goals and to ensure utilities, roads, and specialized area are properly protected.  All real property must be acquired by ordinance per the City Charter. There is a due diligence process that each acquisition goes through to ensure it is donated or dedicated properly and that the City's interests are protected.  These acquisitions are necessary for the provision of services as the community grows and the liability assumed is consistent with these same real property rights throughout the community.

Community Involvement:

The Flagstaff community will benefit from acquisition of real property interests that are used by and serve community needs.

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