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Meeting Date: 12/06/2022  
From: Bryce Doty, Real Estate Manager

Consideration and Approval of Contract:  Amendment to Cooperative Purchase Contract for Real Estate Appraisal Valuations with Landpro Valuation, LLC for additional work and cost in the amount of $14,000 related to property acquisitions for the Switzer Canyon Water Transmission Main Phase IV Project and a future trail connection.
  1. Approve the Amendment to Cooperative Purchase Contract for Real Estate Appraisal Valuations with Landpro Valuation, LLC in the amount of $14,000 in addition to other fees and taxes for property acquisitions necessary for the Appraisal Services for Water Transmission Main Phase IV Projectt; and
  2. Authorize the City Manager to execute the necessary documents.
Executive Summary:
On August 16th, 2021,  the City entered into a cooperative purchase contract with Landpro Valuation for appraisal services for the Switzer Water Main Transmission Phase IV Project. Appraisals are required as part of the property acquisition process.

The City is now seeking appraisals for access road and maintenance road access easements.  The road easements will enable Water Services to use existing private roads to access waterline valves and hydrants.  The City is taking this action at the request of property owners whose properties are affected by the Project.

A property owner has agreed to sell the City a trail easement, in addition to the waterline and temporary construction easements for the Project, based upon appraised value. The City needs to obtain an appraisal of the trail easement.  The future trail is identified in the newly adopted Active Transportation Master Plan, and is part of an existing social trail that runs through the valley. 

The contract amendment will bring the annual aggregate total contract price above $50,000, requiring City Council approval. 
Financial Impact:
The additional appraisals increase the cost of the contract by $14,000.  Of this amount, $12,000 will be funded within the Water Services Fund in account number 202-08-370-3157-0-4421 with a total budget in FY2022-23 of $200,000 for the project.  The remaining $2,000 will be funded with Flagstaff Urban Trail System and Open Space bond dollars in account number 403-09-421-3247-5-4431.
Policy Impact:
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives

Safe and Healthy Community -
  • Foster a safe, secure, and healthy community.
  • Ensure the built environment is safe through the use of consistent standards, rules and regulations, and land use practices.
Sustainable, Innovative Infrastructure -
  • Deliver outstanding services to residents through a healthy, well maintained infrastructure system.
  • Utilize existing long-range plans that identify the community's future infrastructure needs and all associated costs.
  • Identify smart traffic management, multi modal transportation, and alternative energy opportunities.
Regional Plan

Goal WR.2. Manage a coordinated system of water, wastewater, and reclaimed water utility service facilities and resources at the City level and identify funding to pay for new resources.

Goal WR.3. Satisfy current and future human water demands and the needs of the natural environment through sustainable and renewable water resources and strategic conservation measures.

Goal WR.4. Logically enhance and extend the City’s public water, wastewater, and reclaimed water services including their treatment, distribution, and collection systems in both urbanized and newly developed areas of the City to provide an efficient delivery of services.
Has There Been Previous Council Decision on This:
The City of Flagstaff began the Switzer Canyon Water Transmission Main Project in 2012 and has completed the first three phases.  The project started at the intersection of Switzer Canyon Road and Route 66 and headed north and up Turquoise and across Forest Avenue to Fir Avenue and west on Fir to the Elks Lodge at San Francisco Street.  Phase IV and V are the final stages to complete the project. The line will be installed going north up San Francisco Street and generally follow the existing 16" water line across private property located in unincorporated Coconino County to City reservoirs for approximately two miles.

The City is securing easement rights along this corridor for a new water transmission main. In response to property owner requests to minimize disturbance of natural areas,  The City now plans to access valves through existing private roads for routine maintenance versus using the waterline easement.  The City is obtaining appraisals and will offer to purchase the necessary access and maintenance road easements based upon appraised value.  

Finally, the appraiser is updating the appraisal reports for the waterline and temporary construction easements for which it was necessary to file a condemnation proceeding. State law provides that a property owner is entitled to be paid just compensation as of the date the summons for a condemnation proceeding is filed (in this case, October 20, 2022).  
Amendment to Contract


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