*Pay settlement of Arrowwood Investments LLC and Arlen Smith claims for $15,300 for damages and the purchase of a parcel of property

The City of Portland ordains: Section 1. The Council finds: In July 2023, the Portland Water Bureau had a small parcel of property declared as surplus. The parcel of property was no longer needed to deliver water to the residents of Portland. At the time, selling the property supported the bureau’s commitment to thoughtful financial planning and efficient property management, allowing the bureau to deposit sale proceeds into the Water Fund and redirect bureau personnel resources currently being used to maintain and secure the property. That small parcel was sold in December 2023 and the deed recording the sale was recorded in January 2024. Subsequent to the sale, a number of issues were discovered, including non-compliance with the surplus property rules and the existence of underground piping that potentially trespassed under the adjacent property owner. In addition, following the sale, the purchaser spent time and money to perform a variety of alterations to the property. In approximately June 2024, a lawsuit was filed by the adjacent property owner. Given these discoveries and the lawsuit, the Water Bureau has agreed to repurchase the property described in Exhibit A and to compensate the purchaser for any and all potential damages of any kind whatsoever for a total of $15,300. In addition, the Water Bureau has agreed to review and update its internal policies related to the identification of surplus real property and to review binding City policy ADM 13.02 Disposition of City Real Property and recommend to the City Administrator any revisions to remedy identified issues. NOW, THEREFORE, the Council directs: The City Attorney’s Office and the Portland Water Bureau Director are authorized to execute on behalf of the City of Portland any and all documents required by the City Attorney for conveyance of the title to the property described as Exhibit A and for payment of damages of $15,300. The Water Bureau will review and update its internal policies related to the identification of surplus real property and will review ADM 13.02 and recommend any appropriate revisions to the City Administrator. Section 2. The Council declares that an emergency exists in order to avoid undue and costly delay in settling the identified claims; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.